ECB’s Philip Lane Warns AI Could Weaken Workers’ Wage Bargaining Power

European Central Bank Executive Board member Philip Lane warned that artificial intelligence could weaken workers’ bargaining power and moderate wage growth, even before a broad change in employment becomes visible.

Lane delivered the remarks Oct. 13 at the International AI Summit in Dublin. He said the possibility that AI could replace some workers may also reduce labor’s share of total income. The ECB has not seen a major shift in overall employment trends, though hiring plans are muted.

AI use at work is spreading. In an ECB household survey, 52% of workers reported using AI at work in 2026, up from 26% in 2024. The median worker who used AI reported saving three hours a week.

Those time savings do not necessarily mean higher productivity. Gains depend on whether workers use the time to produce more and whether employers can put the added capacity to use. The ECB has not detected a material effect on aggregate productivity.

Lane said AI’s labor-market effects could differ by occupation. Demand may grow for jobs that complement the technology while falling for work that AI can replace. The ECB’s fourth-quarter 2025 firm survey found that 64% of companies used AI experimentally or moderately, while 7% reported significant use.

AI investment may also affect financial conditions. Lane said investment linked to AI may be contributing to higher global long-term interest rates, tightening conditions in the euro area.