EU must strengthen its productivity growth – a key message in former ECB President Mario Draghi’s report on Europe’s future competitiveness. In short: more needs to be produced with fewer working hours.
AI has the potential to increase productivity, support innovation, strengthen competitiveness, and improve working conditions – while also enabling the green and digital transitions. But to unlock this potential, the EU must avoid regulatory overreach and ensure that businesses can adopt and scale AI solutions. This is not the time for new burdensome rules – especially as companies already face a heavy administrative load and skill shortages.
Between 2019 and 2024, over 100 digital-related legislative proposals were adopted at EU level. While well-intended, this volume of new regulation has led to increased compliance costs and reduced innovation capacity – particularly for smaller firms. The Draghi report highlights the harmful impact of overregulation in key sectors like healthcare and energy. New EU initiatives should aim to create opportunities – not obstacles – for European companies to leverage AI and maintain global relevance.
As work becomes increasingly digital and decentralised, it is essential to make the most of the opportunities this transformation offers – for both employers and employees
Ongoing policy discussions on quality jobs increasingly recognise the role of digital tools, particularly ICT, in enabling more flexible work arrangements and enhancing workforce productivity. As work becomes increasingly digital and decentralised, it is essential to make the most of the opportunities this transformation offers – for both employers and employees – while ensuring that rights are protected and risks are managed. When properly implemented, AI and algorithmic management systems can support smarter task distribution and improve overall workplace efficiency. Still, a one-size-fits-all regulatory approach would be counterproductive. Algorithmic management systems vary widely across sectors and firms, and their use is already covered by existing frameworks such as GDPR, occupational health and safety laws, and collective agreements in many Member States. Social dialogue – not new legislation – is the key to managing these changes effectively.