Impact of Generative AI on Job Markets and Regional Differences


Generative AI has a greater impact on the job market than previous automation processes, according to a report by the Organization for Economic Cooperation and Development (OECD). It mainly affects regions and areas where technology has previously automated few jobs. Researchers do not expect a decrease in the number of jobs.

AI affects jobs in cities. The influence of generative AI is due to its wide range of applications. It allows the automation of cognitive and creative tasks performed by specialized workers. Since such jobs are mainly in urban areas, the impact of automation shifts from rural to urban areas. Previously, automation processes primarily changed jobs in production and manufacturing, as well as professions in rural areas, such as livestock farming or grain cultivation.

Currently, professions requiring higher education levels are most affected by generative AI. This includes programmers and database architects. According to the OECD, being affected by artificial intelligence does not necessarily mean job loss. An increase in automation risk has been associated with a 5.6 percent increase in productivity over five years. At the same time, 61 percent of European workers expect to need to learn new skills due to the impact of AI on their jobs.

The financial industry will be significantly affected by generative AI. The OECD report states that the growing influence of generative AI primarily affects jobs in finance and insurance, communications, and the technology sector. In contrast, less change is expected in agriculture, food production, and construction due to the lower use of IT in these areas.

In Germany, between 25 and 30 percent of workers encounter generative AI in their jobs. This is confirmed by another study. The value is significantly higher in city-states and Hesse. Researchers expect that the proportion of jobs strongly influenced by AI will rise to over 50 percent on average in the coming years. Although the difference between rural and urban regions is expected to be small compared to other EU countries, researchers anticipate a difference between federal states. In Thuringia, only about 40 percent of jobs are expected to be strongly affected by artificial intelligence, while the proportion for Berlin is estimated at nearly 70 percent.