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No one is optimistic, and the most at risk are the workers who...
Slovenia📈 EconomyCenter7 days ago

No one is optimistic, and the most at risk are the workers who...

A survey by the Munich Institute for Economic Research (Ifo) indicates that many German companies expect artificial intelligence (AI) to impact wages over the next five years, with a greater likelihood of wage reductions than increases. The study, based on responses from over 3000 German firms using AI, suggests that employees with less work experience are most at risk of lower wages. Companies anticipate that AI will not affect all workers equally, with those having fewer qualifications or less experience facing the greatest potential for reduced earnings. The findings show significant variation across industries, with service providers expecting the highest proportion of wage cuts for both experienced and inexperienced workers.

In Germany, a growing number of companies anticipate wage cuts over the next five years due to the increasing adoption of artificial intelligence (AI), according to a recent study conducted by the Munich Institute for Economic Research (Ifo). The findings reveal that particularly workers with less than five years of work experience face the highest risk of reduced salaries. Anna Ruffert, an Ifo researcher, noted that significantly more businesses expect negative impacts from AI compared to positive ones. The survey, which included responses from over 3,000 German firms already utilizing AI, found that approximately half of these companies anticipate lower wages for employees with fewer than five years of professional experience. While there is some variation based on the level of experience and education, the overall trend suggests a decline in expected salary increases. For instance, among workers with less than five years of experience and no university or vocational training, 48.3% of companies expect wage reductions, while only 5.9% predict raises. Among those with limited experience and higher educational backgrounds, 50.8% of firms anticipate lower pay, and just 16.3% foresee increases. The impact of AI on wages appears to differ across industries. In construction, where AI's influence is considered relatively weaker, 39% of companies expect wage cuts for less experienced workers, and 31.3% for more seasoned employees. Conversely, service providers show the strongest expectations of wage reductions, with 53.3% anticipating lower pay for less experienced staff and 44.2% for those with greater experience. These figures highlight the varying degrees to which different sectors believe AI will affect compensation structures. The study underscores a broader concern within the German workforce regarding the potential long-term effects of automation and digitalization on employment conditions. Many businesses share the view that AI will not uniformly affect all employees, but rather will disproportionately impact those with fewer qualifications and less tenure. This perception is reinforced by the data showing that even among more experienced workers, the majority of companies still expect wage declines. Industry-specific differences further complicate the picture. While construction firms appear somewhat more optimistic about maintaining current wage levels, service sector employers exhibit stronger concerns about declining salaries. This divergence reflects the varied nature of job roles and the extent to which AI can automate tasks in different fields. As AI continues to evolve, its integration into business operations is likely to reshape labor markets in ways yet to be fully understood. The implications of these trends extend beyond individual workplaces, influencing broader economic policies and social safety nets. With many companies projecting wage reductions, governments and unions may need to reassess strategies aimed at supporting workers during this transition period. The ongoing shift toward AI-driven economies presents both challenges and opportunities, requiring careful navigation to ensure equitable outcomes for all segments of the workforce.

2 reports

Slovenske novice logoSlovenske noviceIndependentCenterFactual 95Objective 887 days ago
This European country is already expecting a reduction in wages due to artificial intelligence

A survey by the Munich Institute for Economic Research (Ifo) indicates that many German companies expect wages to decrease over the next five years due to the adoption of artificial intelligence (AI). The study found that employees with less than five years of work experience are most likely to face wage cuts. According to the research, nearly half of the participating companies anticipate lower wages for these workers, while fewer expect increases. The impact varies based on education level and industry, with service providers expecting the most significant wage reductions for both inexperienced and experienced workers. In contrast, construction has the weakest expected impact from AI on wages.

Bias read (Center): The article presents statistical findings from a survey conducted by a reputable economic research institute. It reports expectations of wage changes due to AI adoption without overtly favoring any side, providing data across different demographics and industries. There is no clear ideological slant

Why factuality (95): The article accurately reports findings from a study by the Munich Institute for Economic Research (Ifo) involving over 3,000 German companies. It provides detailed statistics on expected wage reductions based on experience levels and education, aligning closely with the original source. The informa

Why objectivity (88): The tone remains largely neutral, presenting both sides of the argument (expected wage cuts vs. potential increases). However, there is a slight lean towards emphasizing the negative impact, particularly on less experienced workers, which may introduce some subtle bias.

Maribor24 logoMaribor24IndependentCenterFactual 95Objective 877 days ago
No one is optimistic, and the most at risk are the workers who...

A survey by the Munich Institute for Economic Research (Ifo) indicates that many German companies expect artificial intelligence (AI) to impact wages over the next five years, with a greater likelihood of wage reductions than increases. The study, based on responses from over 3000 German firms using AI, suggests that employees with less work experience are most at risk of lower wages. Companies anticipate that AI will not affect all workers equally, with those having fewer qualifications or less experience facing the greatest potential for reduced earnings. The findings show significant variation across industries, with service providers expecting the highest proportion of wage cuts for both experienced and inexperienced workers.

Bias read (Center): The article presents statistical data from a research institution without overtly biased language or selective sourcing. It reports findings objectively, noting differing expectations among industries and employee groups without taking a stance on whether these predictions are accurate or desirable.

Why factuality (95): This article also accurately reflects the Ifo study results, including the percentage of companies expecting wage cuts and the factors influencing these expectations. It maintains consistency with the first article and does not add any new or conflicting information.

Why objectivity (87): While the article presents the data objectively, it uses more emotionally charged language such as 'najbolj ogroženi pa so delavci' (the most at risk are workers), which introduces a slightly more pessimistic tone. This leans into the narrative of concern rather than neutrality.

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