AI Tools Enhance Productivity Without Reducing Jobs, Say European Start-Ups
A recent study by venture capital firm Index Ventures, which surveyed 600 European tech start-ups, reveals that the majority do not believe the adoption of artificial intelligence (AI) tools will lead to job losses.
Half of the companies surveyed view investment in AI as an opportunity to hire more staff, while an additional 29% expect to maintain their current workforce levels.
While some start-ups acknowledge that certain roles in software development, marketing, and customer service may be reduced, they anticipate increased recruitment in software engineering and in developing new products and services. Hannah Seal, a partner at Index Ventures, noted that this optimistic outlook aligns with her experience working with high-growth companies. She explained that AI tools enhance employee productivity rather than replace roles. For instance, using AI assistants like GitHub’s Copilot can make engineers twice as efficient, allowing companies to reallocate resources to build more and better products without cutting staff.
The study also found that most employees are proactively teaching themselves to use AI tools, dedicating an average of four hours per week to learn new technologies. Only 29% have received employer-initiated training. Employees skilled in AI-related areas are already earning, on average, 10% more than their peers, indicating the value placed on these competencies.
Seal highlighted that some AI-powered services are addressing labor shortages in specific industries, thereby supporting existing roles. She cited DataSnipper, a Dutch start-up that developed software for auditors, as an example. By automating manual data reconciliation—the aspect of the job that is often considered tedious—AI allows auditors to focus more on client advisory work, making the profession more appealing to graduates and helping to attract new talent to the field.
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AI Tools Enhance Productivity Without Reducing Jobs, Say European Start-Ups
