Research published by the European Central Bank (ECB) shows that the rapid adoption of artificial intelligence (AI) could lead to a reduction in wages but is currently creating jobs, particularly for the young and highly-skilled population. The findings reveal that AI investment has increased, prompting economists to study its impact on the labour market. The research highlights the need for further analysis to determine AI’s effects on employment, wages, growth, and equality.
BofA Global Research predicts that the European Central Bank will raise all three policy rates by 25 basis points at its upcoming meeting, citing a weaker growth outlook and no signs of a peak in core inflation. If the ECB does not hike next week, it could be the last hike of this cycle. BofA Global Research expects the first cut by the ECB in June 2024.
