Unless you've been living under a rock, you'll be aware that everyone is talking about generative AI, known as KI (Künstliche Intelligenz) in German. Whether it's students using ChatGPT to write their university essays or social media users generating strange images and videos, technology is steamrolling ahead.
There's no doubt that it is reshaping the workplace. Arguably, it's making workers more efficient. But there are concerns about plagiarism, ethics and the quality of work created with AI.
Everyone has a different opinion on how far AI will disrupt the labour market. Numerous articles in the New York Times, the Guardian and Bloomberg warn of upheaval, with generative AI predicted to take over lots of tasks in knowledge-based professions. Experts believe that women and young people entering entry-level jobs will be hit hardest.
A recent study by the IPPR think tank said up to eight million jobs in the UK could be at risk from the use of artificial intelligence. Meanwhile, many companies – such as Microsoft, Klarna and German insurance group Allianz – have already started cutting thousands of jobs as they turn to AI.
How will AI affect Austria's job market?
Lots of foreigners come to Austria for work opportunities, whether in the tech, communications, creative, education or science industries. A key question is: how big a threat is AI to the Austrian job market?
As you might expect, opinions among experts differ.
Julia Eisner, vice president of Women in AI Austria, said there is no widespread talk of replacing workers with the technology. Instead, it's about giving employees AI support.
"People are working with a tool, we are still a long way from true automation," said Eisner in a report by Der Standard.
According to data from the Austrian Institute of Economic Research (Wifo), the use of AI in Austrian businesses doubled between 2023 and 2024.
Around 20 percent of companies are using these systems to increase efficiency and automate routine tasks.
Martin Puaschitz, chairman of the Management Consulting, Accounting, and IT (Ubit) section of the Vienna Chamber of Commerce, is optimistic about AI developments.
He said technology is not replacing a generation of workers but is changing routines.
Different industries and groups affected
The effects of AI are industry-specific, said Eisner.
She said AI is already in use – or may be soon – in communications departments and customer service, as well as for automation in manufacturing and the chemical industry, with employees monitoring processes on the sidelines.
The situation is different in the IT industry. Although many programmers use AI tools, there has been little job displacement there, at least in Austria.
Martin Puaschitz believes there is a shift in focus needed from employees in traditional professions such as accounting. “In the past, it was all about data entry, but today it's more about interpretation and consulting," he said.
Meanwhile, the number of apprenticeships advertised in the industry has doubled, but the training itself is changing. However, the Ubit chairman advocates approaching digitalisation and AI without fear. "We have to start with education," he said.
Other experts agree that AI should not be feared – but that it may change the outlook, especially for junior positions.
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An analysis of the job platform Karriere.at for Der Standard showed the proportion of entry-level jobs across all industries has remained relatively stable in recent years.
In January 2021, around 13 percent of advertised positions were entry-level jobs – exactly the same as in June 2025. In between, the proportion fluctuated between 10 and 19 percent, pointing to no clear decline.
Even in certain occupational fields such as law, where you might expect a decline in legal assistants, for example, no such trend is apparent according to the data. The proportion of entry-level jobs actually rose from 11 percent at the beginning of 2021 to 14 percent in June 2025.
But the number of job advertisements across some industries has changed significantly. In marketing, for instance, fewer jobs are being advertised this year compared to previous years.
The same applies to call centre jobs, which increased until mid-2022 but have been declining since then.
Martin Wrulich, senior partner at McKinsey Austria, said: "Artificial intelligence does not replace people, it relieves them." Yet he says AI is currently one of the reasons why Austrian firms are cautiously approaching junior recruitment.
Austria's rocky economy
Experts say that developments in the labour market may are more impacted by the rough economy than AI.
As The Local has been reporting, inflation in Austria remains high compared to European neighbours, standing at four percent in October.
READ ALSO: What Austria's four percent inflation rate means for your food and energy bills
Eisner said fewer new hires, especially at the junior level, combined with a growing shortage of skilled workers is contributing to turbulence in the job market.
A recent report by career platform Stepstone reflects the uncertain situation. Researchers found in a survey that 21 percent of companies are planning restructuring in the next six months, while 10 percent anticipate job cuts or a hiring freeze and 19 percent intend to increase staffing again.
Nikolai Dürhammer, Managing Director of Stepstone Austria and Switzerland, said: "While unemployment is rising in certain occupational groups, there continues to be a shortage of skilled workers in other areas.
"Despite the recession, the search for talent remained extremely difficult – this gives us a taste of what lies ahead when the labour market picks up again and the working population shrinks year after year."
READ ALSO: How hard is it for immigrants in Austria to find a job?
How should people in Austria prepare?
Career bosses want to see more training for workers so they can use AI in their professions.
Eisner said this is especially important for women who may be affected more by the technology changes. She called on Austrian companies to promote targeted retraining and trainee programmes to prepare employees.
People in Austria could also read up on trend developments and improve their AI skills in their own time, while keeping an eye out for jobs affected by the labour shortage in Austria.
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Meanwhile, AI is expected to generate some new jobs and opportunities too, as companies invest in economies.
In August this year, Microsoft launched new datacentres in Vienna. The tech firm set itself the goal of training 300,000 people in Austria in digital skills by the end of 2025.
At a joint press conference at the launch of the 'data centre region' in summer, Austria's State Secretary Alexander Pröll (ÖVP) said: "The investment in the data centre strengthens Austria as a business location and creates the foundation for innovation.
"At the same time, it represents a strong commitment to Austria as a digital hub."
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