German Union Calls for Binding AI Rules as PwC Study Reveals Mixed Impact on Employment

More than 140 worker representatives from the IG Metall union in Duisburg-Dinslaken are demanding legally binding safeguards for the use of artificial intelligence in the workplace. The works councils insist on co-determination rights as companies push ahead with technological transformation.

Their call comes against a backdrop of conflicting data. A new wave of studies shows that while AI can boost productivity and even create jobs, it is also already costing people their positions.

Strategy Determines Staffing Outcomes

The Global AI Jobs Barometer 2026 from PwC, released at Paris’s VivaTech trade fair, found that a company’s approach to AI makes a major difference. Businesses that combine automation with human support — a hybrid strategy — saw their workforce grow by 52 percent. Those using AI primarily to replace workers grew only 36 percent.

Productivity gains also diverged sharply. Hybrid-strategy companies reported a 34 percent productivity boost, double the rate of purely automated operations. Wage growth has been uneven too: since 2018, pay in roles with heavy AI exposure rose 24 percent, compared with just 17 percent in other sectors.

PwC global chairman Mohamed Kande noted at VivaTech that companies adopting AI at scale tend to add headcount rather than cut it.

Yet the rosy picture has a darker side. A Bitkom survey of 600 German companies from April 2026 found that 41 percent are actively using AI — and 19 percent of those already laid off staff.

The Institute for Employment Research (IAB) projects up to 1.6 million jobs could be affected in the long term, with 800,000 disappearing and a similar number emerging.

Job Cuts Accelerate, Especially in the US

In May 2026, U.S. employers announced nearly 100,000 layoffs. Roughly 40 percent were directly attributed to AI developments. Germany’s DGB trade union umbrella organisation has responded by demanding comprehensive retraining programmes.

But many companies aren’t ready to train effectively. A study by Intesa Sanpaolo and Luiss University found that while 85 percent of AI-using firms plan to offer training, only 19 percent have structured programmes in place.

Amazon offers a concrete example of the trend. The company is testing software called “Full Facility Load Balancing” (FFLB), which recalculates warehouse staffing needs every three minutes and automatically reassigns workers. An internal analysis estimates annual savings of US$193 million and nearly seven million working hours. Rollout to all robot-assisted fulfilment centres in North America is planned for this year.

Despite these efficiencies, Amazon has cut around 30,000 administrative positions since late 2025. CEO Andy Jassy cited automation progress as the reason.

Jeff Bezos, speaking at VivaTech, predicted that AI would create a labour shortage rather than mass unemployment. His startup Prometheus, he said, is working on accelerating inventions in physical manufacturing.

Young Professionals Bear the Brunt

Junior workers are feeling the squeeze. The Youth Study 2026 found that 53 percent of 14-to-29-year-olds expect AI to replace simple tasks; 30 percent fear they themselves could be replaced.

Nvidia CEO Jensen Huang noted that junior developers now have greater difficulty finding jobs, while experienced staff increasingly focus on polishing AI-generated code.

To support the growing demand for computing power, Deutsche Telekom opened an Industrial AI Cloud Centre in Munich in February 2026. The facility, which cost €1 billion, is equipped with up to 10,000 Nvidia Blackwell GPUs and is expected to reach full operation in the third quarter.

Experts Warn Against ‘AI Absolutism’

Columbia professor Suresh Naidu cautioned against overhyping the technology. While AI is transformative, software accounts for just four to six percent of GDP, he pointed out.

Some critics also suspect that certain companies are using AI as a convenient excuse for layoffs that stem from other economic pressures.

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