Denmark: Selected Issues

International Monetary Fund

No 2025/166, IMF Staff Country Reports from International Monetary Fund

Abstract: This Selected Issues paper studies the impact of artificial intelligence (AI) on Denmark’s labor market. The paper assesses Denmark’s digital preparedness and potential to harness the benefits of AI, using the IMF’s AI Preparedness Index and other indicators of digital skills, perception, and AI use by companies. It also examines the characteristics of the Danish labor market by mapping an index of exposure and complementarity onto occupational microdata. While Denmark’s flexicurity model effectively facilitates labor reallocation across sectors, the impact of digital technologies on labor markets should be closely monitored. Supporting the adoption the AI technologies in the private sector, especially in subject matter experts (SME), is necessary to fully harness the benefits of AI. The authorities have launched an initiative, SME:Digital, aimed at assisting SMEs in digitally enhancing their operations. In addition, Danish companies often encounter complex regulations and administrative burdens, often at the EU level, when implementing new technologies, which could hinder AI adoption. Therefore, it is essential to ensure a clear and updated legal framework while seeking the scope to ease regulatory burdens.

Keywords: AI Preparedness; C. labor market exposure; complementarity to AI; use of artificial intelligence; gender difference; Labor force; Public sector; Labor markets; Europe (search for similar items in EconPapers)
Pages: 14
Date: 2025-07-04
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