AI Risks Lowering Salaries for Junior Staff
A study from the Ifo Institute in Germany indicates that the spread of artificial intelligence is expected to lead to wage reductions for employees with experience, particularly those in jobs reliant on repetitive tasks, especially less experienced workers. According to a survey of over 3,000 German companies that have begun integrating the technology, about half expect employees with less than 5 years of experience to receive lower salaries, while 40% anticipate wage cuts for employees with more than 5 years of experience. It is believed that jobs involving repetitive tasks and limited digital requirements are more susceptible to automation, with the impact of artificial intelligence varying depending on the level of education and experience.
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