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New analysis shows Danish firms cutting hires due to AI

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Ritzau/The Local - news@thelocal.dk
New analysis shows Danish firms cutting hires due to AI
Companies which adopt AI may be hiring fewer staff, but so far it looks like people are still able to find jobs elsewhere. Photo: Mads Claus Rasmussen/Ritzau Scanpix
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A new analysis from Denmark's national bank has shown that Danish companies who begin to use AI then go on to hire fewer new employees than comparable companies.

This is, it said, particularly clear when it comes to younger staff and staff with higher or further education. There are, however, no signs yet that AI has reduced employment overall.

According to Signe Krogstrup, director of the National Bank, this is a sign that the staff these companies are no longer hiring are still able to find work elsewhere.

"In Denmark we have a flexible labour market and widespread digitalisation and for that reason we're in a good position when it comes to benefiting from AI," she said in a press statement.

The analysis also showed that developments in AI usage have not yet affected salaries.

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"We can't say for sure that employment will not fall in the long-term, but on the other hand AI could also support the founding of new companies and new job roles to the extent that employment actually rises," Krogstrup said.

The analysis also showed that Danish companies have adopted AI to a large extent, particularly in large companies, and Danish companies are using AI more than companies in a lot of other European countries.

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