when

Bank

<p><strong>Philip Lane, who serves as an Executive Board member of the European Central Bank (ECB), <a href="https://www.ecb.europa.eu/press/key/date/2026/html/ecb.sp261013~9db9bf4fd6.en.html" rel="noopener noreferrer nofollow">issued a warning</a> on October 13 about the potential impact of artificial intelligence on the bargaining power of workers, even in times when workers do not experience mass job losses. Wage growth and labour income share will deteriorate before the employment numbers indicate that a shift has happened.</strong></p>
<h3 class="wp-block-heading" id="strong-lane-sees-weaker-pay-power-before-weaker-payrolls-strong"><strong>Lane sees weaker pay power before weaker payrolls</strong></h3>
<p>According to Lane, the option of substituting workers could actually work towards increasing the employers’ advantage. However, ECB does not see major changes in employment trends or precise productivity improvements across the economy.</p>
<p>The use of AI among employees in the euro zone rose from 26% in 2024 to 52% in 2026, and the usual AI user can save up to three hours a week, according to <a href="https://www.ecb.europa.eu/press/blog/date/2026/html/ecb.blog20260826~e1c1a89999.en.html" rel="noopener noreferrer nofollow">ECB’s research</a>. However, savings made in time do not necessarily imply increases in productivity.</p>
<h3 class="wp-block-heading" id="strong-who-captures-the-productivity-gains-strong"><strong>Who captures the productivity gains</strong></h3>
<p>Who gains from increased productivity? A <a href="https://www.pwc.com/gx/en/1/issues/workforce/hopes-and-fears.html" rel="noopener noreferrer nofollow">survey conducted by PwC</a> involving nearly 50,000 participants has revealed that nearly twice as many respondents indicated that their bargaining position was less secure than improved. The company’s “engine room”—56% of the interviewed professionals—has limited access to both AI and career advancement opportunities. As a result, the level of trust in management has dropped by 7%.</p>
<p>Still, jobs demanding AI skills are associated with higher salaries. According to <a href="https://www.pwc.com/gx/en/issues/artificial-intelligence/job-barometer/2026/2026-global-ai-jobs-barometer-global-findings.pdf" rel="noopener noreferrer nofollow">PwC’s jobs study</a>, AI-skilled jobs receive a 62% average premium, although logical causation is not established. As some jobs were “professionalised,” their growth in terms of numbers is twice as fast compared to the growth of “democratised” jobs, and their salaries increased since 2021 by 42%.</p>
<p>Evidence from the <a href="https://www.sciencedirect.com/science/article/pii/S0014292125000935" rel="noopener noreferrer nofollow">study in the European Economic Review</a> proves that increased use of AI decreases the share of incomes going to labor.</p>
<h3 class="wp-block-heading" id="strong-little-sign-of-mass-job-losses-so-far-strong"><strong>Little sign of mass job losses, so far</strong></h3>
<p>There is limited evidence regarding mass layoffs. According to a <a href="https://siepr.stanford.edu/publications/policy-brief/what-really-happening-jobs-separating-ai-hype-reality" rel="noopener noreferrer nofollow">Stanford study</a>, unemployment in the US increased by 0.77 percentage points among workers most exposed to AI since 2022 compared to 0.85 percentage points for those least exposed to AI. This indicates a broader weakness of the labor market rather than a distinct shock produced by artificial intelligence.</p>
<p>Recent graduates face more challenges. Unemployment among them reached 5.6% in early 2026, a 1.6-point perspective increase over three years. According to Stanford, forecasts of AI accelerating mass layoffs, like the prediction made by Anthropic CEO Dario Amodei that AI would end up displacing half of all white-collar working positions and driving unemployment rate to 20% should be taken with caution.</p>
<div class="wp-block-image">
 <figure class="aligncenter size-large is-resized"><img width="1024" height="576" style="aspect-ratio: 1.7777988769226596; width: 1024px; height: auto;" src="https://www.cryptopolitan.com/wp-content/uploads/2026/10/AI-Wages-and-Corporate-Cuts-1024x576.png" alt="">
  <figcaption><strong> AI Adoption Doubles as ECB Warns of Wage Risks: Jobs and Layoffs Compared</strong>
  </figcaption>
 </figure>
</div>
<h3 class="wp-block-heading" id="strong-europe-s-funding-gap-and-the-ai-valuation-risk-strong"><strong>Europe’s funding gap and the AI valuation risk</strong></h3>
<p>Financing hurdles are also present in Europe. According to Lane, investment in the US witnessed growth that was almost double that of euro zone investments in the last two years. An <a href="https://www.ecb.europa.eu/press/blog/date/2026/html/ecb.blog20261006~35bf3c24cb.en.html" rel="noopener noreferrer nofollow">ECB analysis</a> also indicates a trend in which companies that rely on AI for their operations are moving into market financing. The higher cost of borrowing, driven by bank interest rates, creates further pressure.</p>
<p>At the same time, the <a href="https://www.imf.org/-/media/files/publications/gfsr/2026/october/english/execsum.pdf" rel="noopener noreferrer nofollow">October report from the IMF</a> indicates that disappointing benefits from AI investments may lead to a market correction, exacerbated by financial leverage and concentrated bets. In the words of the IMF’s Athanasios Vamvakidis, “<a href="https://mediacenter.imf.org/press-briefings/imf---global-financial-stability-report-annual-meetings--2026/s/f55368c1-983b-45b7-ba7c-1978f67c168c" rel="noopener noreferrer nofollow">resilience is not safety</a>.”</p>
<h3 class="wp-block-heading" id="strong-why-the-kroger-comparison-is-not-proof-strong"><strong>Why the Kroger comparison is not proof</strong></h3>
<p>Cryptopolitan <a href="https://www.cryptopolitan.com/kroger-cut-3000-corporate-jobs-ai-strategy/" rel="noopener noreferrer nofollow">reported</a> that Kroger plans to cut around 3,000 of its 8,200 corporate jobs—about 37%—over three years. CEO Greg Foran announced the cuts October 12, weeks after the retailer unveiled its AI strategy. He cited streamlining and investment in store staff, not AI.</p>
<p>The timing raises questions. It does not prove AI caused the cuts—or that a wider layoff wave has begun.</p>
<p>Don’t just read crypto news. Understand it. Subscribe to our newsletter. <a href="https://www.cryptopolitan.com/newsletters/?utm_source=cp&amp;utm_medium=web&amp;utm_campaign=inlineAds" rel="noopener noreferrer nofollow">It's free</a>.</p>

ECB's Lane warns AI could weaken euro-area wage bargaining

Table of Contents

Cryptopolitan_News

Other articles published on Oct 14, 2026

SEC’s Missed Leadership Role May Slow or Shift Crypto Rulemaking

South Korea Blocks 27 Unregistered Crypto Exchanges, Including KuCoin

Four Records We Published Yesterday Firmed, Split, or Stayed Exactly Where They Were

Shiba Inu today: lowest daily level since September 18

Coins.ph, Philippines’ Largest Crypto Exchange, Faces Central Bank Action Over Gambling Links

Bitcoin Whale Holding Since March 2020 Moves All $377M of BTC

Join our free newsletter for daily crypto updates!