AI can give the Dutch labor market a productivity boost

The Netherlands is poised to lead its neighbors in AI-driven productivity enhancements, according to a recent analysis by ING bank. This potential stems from the country's higher percentage of jobs that can be influenced by AI, offering significant opportunities in the current tight labor market. Recent job growth, concentrated in positions with AI potential, underscores this trend.

Given its strong digital infrastructure and innovation capabilities, the Netherlands can benefit from AI adoption. While AI promises to boost productivity, it may not alleviate labor shortages immediately, as increased economic growth could fuel higher labor demand.

AI's impact on Dutch productivity

The ING analysis reveals how the nation has a high percentage of jobs susceptible to AI influence, a factor that contributes to significant productivity potential in its currently tight labor market. This favorable condition is mirrored by recent job growth predominantly occurring in roles that can be significantly augmented by AI technologies.

AI continuously transforms occupations by automating tasks and increasing operational efficiency, enhancing economic growth prospects within the Netherlands. Despite the slow initial productivity growth during challenging times such as the energy crisis, AI can serve as a catalyst for reversing this trend. While professions like software developer and accountant are challenged by AI, it can help doctors and lawyers speed up the execution of tasks, explains the report.

The Dutch edge on AI

Interestingly, ING says that the Netherlands has an advantage over the other eurozone countries, as it has a higher share of jobs that can be influenced by AI, 43%. Belgium and France's quota is 39%, and Germany's is 35%. Analysts underline how the country can greatly benefit from AI implementation.

Furthermore, the number of jobs where AI can have a major impact has been soaring in the past few years. Four out of the five occupation groups that have been growing more consistently since 2019 have both a high complementarity and exposure to AI. At the same time, the number of jobs AI can take over has also increased.

Ranked high in the International Monetary Fund’s AI Preparedness Index, the Netherlands can absorb new technologies easily. As a result, the labor market can expect a higher productivity is AI is adopted on a wide scale.

GPT-NL in the making: a language model based on Dutch law

With GPT-NL, the Netherlands has its own language model starting this year.

Current trends in AI adoption

Dutch businesses are increasingly integrating AI technologies, with an adoption rate of 22.7% among companies with ten or more employees in 2024, which marks a 9% rise from the previous year. Large enterprises, in particular, are leading the charge, with significant implementation in sectors like information and communication, rising from 37% to 58% within the same period. Text mining and natural language processing are notable areas of growth, indicating a shift towards more sophisticated usage of AI in business environments.

While the uptake of AI presents new opportunities, smaller companies face greater challenges in adopting these technologies, largely due to limited resources and economies of scale. However, with 67.6% of larger companies with 100 or more employees having integrated AI by 2025, there is a clear trajectory for growth. The complex nature of AI adoption in the public sector may pose barriers due to slower process adjustments and risk aversion, potentially hindering broader economic enhancements.

AI usage soars in European companies

AI usage is soaring in European businesses, which increasingly use AI-driven technologies to optimize their workflows.