Labour market institutions and the adoption of artificial intelligence; Evidence on workforce adjustment and technology diffusion across firms

Erik Canton ()
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Erik Canton: European Commission

EU research and innovation paper series from Directorate General for Research and Innovation (DG RTD) of the European Commission

Abstract: This policy brief examines how firms’ ability to reorganise their workforce plays a role in the uptake of artificial intelligence and related technologies. Using firm-level data across OECD countries, it finds that adoption patterns differ across technologies and firms and are associated with differences in workforce adjustment costs. The results highlight that technology diffusion depends not only on innovation, but also on how easily firms can adapt their organisation to new technologies.

Keywords: Artificial intelligence; technology adoption; labour market institutions; employment protection legislation; workforce adjustment; organisational change (search for similar items in EconPapers)
JEL-codes: J24 L25 O32 O33 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2026-06
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Persistent link: https://EconPapers.repec.org/RePEc:eug:wpaper:ki-01-26-095-en-n

DOI: 10.2777/3472998

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