AI Labour Markets

At interface, the AI Workforce & Innovation team provides the empirical evidence and strategic insights Europe needs to translate its AI ambitions into reality. As the EU mobilizes €200 billion through the AI Continent Action Plan and Apply AI Strategy to become a global AI leader, we address the critical workforce challenges that will determine success or failure. With only 13.5% of EU companies currently using AI, our research directly informs the "fifth pillar" of Europe's strategy, strengthening AI skills and talent, by revealing where policies work, where they fall short, and what interventions can turn Europe's talent investments into lasting competitive advantage.

Our research analyzing 1.6 million AI professionals across 31 countries reveals Europe's hidden strengths and urgent vulnerabilities. European countries lead globally in female representation in advanced technical AI roles, Finland at 39%, nearly double the global average, yet lose this advantage through a "leaky pipeline" where women drop from 35% of entry roles to just 14% of senior positions. Through country case studies from Italy to Finland, we document how structural barriers around salaries and career progression transform nations into training grounds for competitors, while recent geopolitical shifts like U.S. H1B visa restrictions create unprecedented opportunities for European talent attraction — if we act strategically.

Currently, Europe relies on international expertise for 30% of its AI workforce, and the Commission's proposed solutions, from the EU Talent Pool to the AI Skills Academy, represent important steps forward. Yet our research reveals critical implementation challenges: 10 of the 13 planned AI Factories aren't located near existing talent pools, and pioneering talent repatriation programs are being scaled back just as geopolitical shifts make them most valuable. Through granular analysis of talent flows, gender dynamics, and policy effectiveness across European countries, we provide the evidence base needed to ensure Europe's €200 billion AI investment builds sustainable innovation ecosystems rather than temporary training facilities for global competitors.