Artificial intelligence (AI) does not currently appear to be causing job losses in Europe, and companies with heavy AI usage are more likely to hire in the long term.
According to a report by the European Central Bank (ECB) published on Wednesday, there was no significant difference in job creation and destruction between companies using AI and those that do not, based on a 2025 survey of 3,500 European companies.
However, firms that use AI frequently were found to be 4% more likely to hire compared to occasional users.
Similarly, companies investing in AI were 2% more likely to increase hiring.
This trend is particularly noticeable in firms leveraging AI for research and development (R&D) and innovation, where the adoption of the technology often requires the recruitment of highly skilled professionals.
Businesses planning to invest in AI within the next year also projected an average increase in job creation.
Conversely, companies employing AI primarily to cut labour costs tend to hire less and lay off more staff, the report said.
The findings contribute to an evolving debate on AI’s long-term impact on employment.
President of the ECB Christine Lagarde stated during a European Parliament hearing in late February that substantial investment in AI has led to productivity improvements, but its broader effects on the labour market remain unclear.
She emphasised that the ECB will closely monitor these developments in the future.
Separately, a study by the Munich-based Ifo Institute revealed that over a quarter of businesses expect AI to result in workforce reductions within the next five years.
