How AI is affecting productivity and jobs in Europe
Summary
A CEPR VoxEU column analyzes firm-level data across Europe, showing AI adoption raises EU labour productivity by about 4% on average with no short-run job losses. Productivity gains are uneven, favoring medium/large firms and those with complementary investments in intangible assets and human capital; policy implications emphasize supporting smaller firms and investing in workforce training and data/software infrastructure to maximize benefits.