FRANKFURT, Oct 13 (Reuters) – The increased use of AI by euro zone companies could curb workers’ ability to demand higher wages while heavy investment into the new technology may be materially tightening financing conditions, ECB chief economist Philip Lane said on Tuesday. With inflation now running at nearly twice the ECB’s 2% target on expensive energy, policymakers are searching for signs of second-round price effects, but have so far concluded there are none, especially in wage growth. While AI has not changed employment trends, hiring plans are muted and this limits workers’ ability to demand compensation for high inflation, Lane said, offering a potential explanation for why wage growth is slowing, despite high inflation.
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