ECB Sees AI Boosting Productivity but No Layoff Surge Yet, Lagarde Says

FRANKFURT, Feb. 26 (GeokHub) — European Central Bank President Christine Lagarde said on Thursday that artificial intelligence is currently enhancing productivity in the eurozone, but it has not triggered widespread layoffs from automation.

Speaking before a European Parliament committee, Lagarde highlighted that while AI adoption is rising, its impact on labour markets remains limited. “What we are seeing for the moment is that it’s increasing productivity,” she said. “But we are not yet seeing consequences in terms of labour market and waves of redundancies that are feared, and that you know we will be extremely attentive going forward.”

The ECB chief’s remarks come amid growing debate in Europe and globally about the long-term effects of AI on employment, wages, and workforce dynamics. While companies increasingly deploy AI to optimize operations, economists have warned that labour displacement could accelerate if adoption outpaces retraining and workforce adaptation.