Recent developments in AI have been causing concern over their potential impact on the economy, labor market, and welfare state. Studies suggest that up to 300 million jobs could be affected in the USA and Europe alone. However, the federal government currently sees no reason to worry about the impact of AI on unemployment rates.
According to the federal government, a potential “disruptive increase” in the use of AI applications could lead to more jobs being replaced in the future, but it also presents opportunities for creating new jobs and forms of employment, especially for people with disabilities or health impairments. The government sees the main challenge arising from AI’s increasing use in preventing growing inequality in the labor market.
The government believes that Germany’s job market will be shaped by demographic changes for the foreseeable future. There are already shortages of skilled workers in some fields, which could be mitigated by introducing AI applications to fill the gaps. Around 11% of German companies are using AI, meaning there is still potential to be tapped. To prevent inequality in the labor market, the government is taking measures to continuously develop qualification measures and regulatory framework conditions.
Works councils play an important role in these developments. While the use of AI in the personnel departments of federal authorities must conform to relevant legal bases and consider ethical issues, there is enormous potential for AI to create a modern, efficient, and crisis-resistant administration for the digital society.
Despite these developments, data protection regulations do not represent a locational disadvantage for the development of AI in Germany. The Federal Employment Agency plans to introduce two systems with AI components in 2023 to combat abuse of social benefits.
