Integrating artificial intelligence (AI) into the Romanian labour market is poised to bring about significant transformations, with estimates suggesting that generative AI could impact up to 4.5 million jobs in the country. This shift presents challenges and opportunities as Romania navigates the complexities of technological advancement.
Job Augmentation and Displacement
Most workforce is expected to experience augmentation rather than outright job loss. Approximately 54% of jobs, equating to around 4.2 million roles, are projected to be enhanced by AI technologies. This enhancement will primarily occur by automating specific tasks and supporting content creation across various sectors, including science, engineering, education, and management.
Conversely, a smaller fraction of the workforce—about 4% or 0.3 million jobs—may face full or partial displacement due to automation. Roles such as bookkeepers, clerical support workers, and contact centre salespersons are particularly vulnerable as their tasks can be significantly automated.
Sectoral Impacts
The sectors most likely to benefit from AI include:
- Information Technology
- Finance
- Business Services
- Public Administration
- Education
- Healthcare
These sectors are expected to see productivity growth ranging from 1.4% to 1.5%, driven by AI’s ability to enhance human capabilities and streamline processes.
Current Adoption and Future Outlook
Despite the potential benefits, the current adoption rate of AI technologies in Romania remains low, with only 4% of companies implementing any form of AI by 2023. However, there is optimism about future investments; around 40% of businesses plan to invest in AI-based automation within the next five years. The primary barrier to adoption cited by many companies is the cost associated with AI tools.
Skills Gap and Workforce Preparedness
One of the critical challenges facing the Romanian labour market is the skills gap. While there is a growing demand for professionals skilled in technology-related fields such as software development and data analysis, there remains a shortage of qualified workers capable of meeting this demand. This skills gap poses a significant challenge for businesses leveraging digitalization and AI effectively.
To address these issues, there needs to be a concerted effort toward:
- Bridging the Skills Gap: Investment in education and training programs focused on developing skills in coding, data analysis, and AI.
- Reskilling Initiatives: Policies that support the retraining of workers at risk of displacement due to automation.
Conclusion
The advent of AI in Romania’s labour market presents a dual narrative: while there is significant potential for job enhancement and productivity gains, there is also a pressing need for strategic initiatives to reskill the workforce. As Romania continues to adapt to these changes, it will be crucial for stakeholders—including government bodies, businesses, and educational institutions—to collaborate effectively in harnessing the benefits of AI while mitigating its risks.
