Study Shows European Tech Start-Ups See AI as Job Growth Opportunity, Not Threat

A recent survey of 600 European tech start-ups, conducted by venture capital firm Index Ventures, reveals that most companies do not anticipate artificial intelligence (AI) tools leading to job losses. In fact, half of the surveyed firms view AI investment as an opportunity to expand their workforce, while an additional 29% expect to maintain current staff levels.

While some start-ups acknowledge that certain roles in areas such as software development, marketing, and customer service may be reduced due to automation, they expect to increase hiring in other sectors, particularly in software engineering and product development. According to Hannah Seal, a partner at Index Ventures, this optimistic outlook aligns with her experiences working with high-growth companies. She explained that AI tools are seen as productivity enhancers, rather than role replacements. For example, AI assistants like GitHub’s Copilot can double the efficiency of engineers, enabling companies to allocate resources more effectively and focus on expanding their product offerings without reducing headcount.

The study also highlighted that many employees are taking a proactive approach to adopting AI technologies. On average, workers are dedicating four hours per week to self-teach AI tools and techniques. In contrast, only 29% of respondents reported receiving formal training from their employers. Employees skilled in AI-related areas are commanding higher wages, with an average salary premium of 10% compared to their peers in non-AI roles.

Seal further noted that AI-powered services are not only enhancing productivity but are also helping address labor shortages in specific industries. She pointed to DataSnipper, a Dutch start-up that developed software for auditors, as an example. By automating the tedious task of data reconciliation, AI enables auditors to focus more on strategic client advisory work, making the profession more attractive to new graduates and helping to draw fresh talent into the field.

The findings suggest that, for many European tech start-ups, AI is viewed as a tool to enhance capabilities and drive growth rather than a threat to jobs. As businesses increasingly invest in AI technologies, it appears that the focus is on leveraging these tools to improve productivity and foster new opportunities, both for companies and their employees.