April 30, 2025

AI's Impact on the Labor Market: Less Disruptive Than Expected

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AI's Impact on the Labor Market: Less Disruptive Than Expected

Artificial Intelligence: (Still) No Revolution in the Labor Market?

The rapid development of Artificial Intelligence (AI) in recent years has sparked both hopes and fears regarding its impact on the world of work. While optimistic voices predict the automation of repetitive tasks and an increase in productivity, others fear job losses due to the use of intelligent machines. A recent study by Danish economists now suggests that the actual impact of AI on the labor market has been less than expected.

Study Examines the Influence of AI on Various Professions

The economists Anders Humlum and Emilie Vestergaard examined eleven professions in Denmark in their study, which are considered particularly vulnerable to the effects of AI. The occupational groups studied include IT specialists, financial advisors, lawyers, journalists, and teachers. A total of over 7,000 jobs and around 25,000 employees were surveyed in the period from 2023 to 2024. The study focused on the use of AI tools in the workplace and their influence on working hours, wages, and the general work situation.

No Significant Changes in Working Hours and Wages

The results of the study show that working conditions in the professions examined have hardly changed so far, despite the use of AI. Neither average working hours nor wages show significant fluctuations. According to Humlum, this is not due to a rejection of the new technologies by employees: The acceptance of AI tools, especially chatbots, is surprisingly high and is also promoted by employers. Nevertheless, the economic effects have so far failed to materialize.

AI Creates New Tasks and Changes Existing Workflows

According to the researchers, one reason for the lack of economic effects is that while AI accelerates some work steps, it also creates new tasks. For example, AI-generated texts must be checked and corrected, and creating effective prompts requires new skills. Even in professions where AI tools are not used directly, dealing with the results of AI – such as checking homework for AI-generated content – can mean additional effort.

Small Time Savings and Limited Productivity Gains

The study quantifies the average time saved through the use of AI at just 2.8 percent per working hour. With a 40-hour week, this corresponds to a little more than one hour. According to the economists, this small time saving does not necessarily lead to an increase in overall productivity, as the freed-up time cannot always be filled with productive tasks.

Productivity Gains Rarely Benefit Employees

Even if the use of AI leads to an increase in productivity, this gain rarely benefits employees. The study shows that in only three to seven percent of cases, the gains achieved through AI were passed on to employees in the form of wage increases. Humlum summarizes: "The assumption that these tools are causing a transformation must be confronted with the fact that even after two years, they make no difference to economic outcomes."

Outlook

The study by Humlum and Vestergaard provides important insights into the current impact of AI on the world of work. Although the long-term consequences of AI deployment are not yet foreseeable, the results indicate that the transformation of the working world through AI will be a complex and lengthy process.

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