AI Could Lower Wages for Less-Skilled Workers in Germany, Study Finds

Artificial intelligence may lead to lower wages for less-qualified and inexperienced workers in Germany, according to a new study by the Ifo Institute. The Munich-based economic research institute surveyed over 3,000 German companies that have integrated AI into their operations.

The findings indicate a significant wage disparity based on experience and qualifications. Roughly half of the surveyed companies believe that workers with less than five years of professional experience can expect lower salaries due to AI adoption. This contrasts with only 40% of companies anticipating wage reductions for employees with five or more years of experience.

"From the perspective of many companies, artificial intelligence will not affect the salaries of all employees in the same way," explained Ifo researcher Anna Ruffert. "They most often expect a decrease in wages for less experienced workers." The study highlights that roles involving repetitive tasks and requiring minimal digital skills are most vulnerable to AI-driven automation.

Furthermore, the study reveals disparities based on educational background. Only 5.9% of companies foresee AI increasing wages for workers without a university degree and with less than five years of experience. In contrast, over a quarter of companies anticipate salary increases for university graduates with more than five years of experience, suggesting that AI could enhance productivity and compensation for highly skilled and experienced employees.