Dr. Vassilia Orfanou, PhD, Post Doc
Writes for the Headline Diplomat eMagazine, LUDCI.eu
Special thanks to Louis Juste, Silicon Luxembourg for their input and contribution
Introduction
Luxembourg is witnessing a surge in AI adoption across industries, raising the question: Is its labour market ready for this shift? This article assesses Luxembourg’s labour market readiness for AI adoption and explores strategies to navigate the changing employment landscape.
52% of the Companies use AI tools
PricewaterhouseCoopers’ study (PwC) titled: “Use of Data Analytics and Artificial Intelligence 2021 Survey” shows the AI level uptake in companies. In 2021, AI adoption was close to 52%, compared to only 24% in 2019. An additional 20% of Luxembourgish businesses are piloting AI initiatives, clearly showing the current momentum of AI adoption.
Simmons & Simmons’ report of 2023 discusses specific AI use cases in the Luxembourgish financial industry. Out of 158 applications surveyed, 59% are already in production. Top use cases include Anti-Money Laundering (AML) and fraud detection (18%), process automation (15%), and marketing/product recommendations (8%). Customer insights and cybersecurity represent 8%.
A distinct pattern is observed: Luxembourg is fully integrating AI into daily business operations, with companies prioritizing AI projects, while clearly investing resources and talent in this direction, the PwC study confirms.
Navigating the AI Frontier: Luxembourg’s Labor Market Dynamics
AI’s adoption in Luxembourg’s job market spurs both job growth and skill shifts, as seen on Glassdoor. In-demand skills include machine learning engineering, image analysis, research and QA engineering, data software engineering, data science, and data analytics.
Closing the AI skills gap and preventing labor market polarization are critical challenges. Xavier Bettel, the Deputy Prime Minister of Luxembourg, in his recent interview with Lena Martensson, Senior Marketing & Communication Officer, Luxinnovation, says “Integrating AI into existing workflows, for example, may raise new questions related to working conditions, employment law and labor relations”.
He highlights, “The increased automation of previously manual tasks brings challenges, but at the same time, there is a great potential to create new jobs. These will probably require a completely different skill set, however, which could potentially lead to a polarization of the labour market.”
Investing in AI education and training is key to bridge the skills gap. Ensuring data privacy and ethical AI practices are also vital, given Luxembourg’s focus on regulatory compliance and privacy.
Bettel also reports on AI over-reliance for personal data use. He prioritises cybersecurity and data privacy, with Luxembourg adhering to the GDPR, and data safeguarding of Act of 1 August 2018 (replacing Directive 95/46/EC).
Despite these valid concerns, AI integration will boost business productivity, streamline operations, and foster AI Tech innovation. Barry Cooper, the president of the CX Division at NICE, highlights “AI will continue to take on some of the tasks previously done by humans, but it will also open new opportunities, new jobs that have yet to be created. Those that understand and work to integrate AI into their workflows will be better positioned for success in the years to come.”
Forging an AI-Ready Workforce in Luxembourg
Luxembourg’s success hinges on equipping its workforce for an AI-driven economy. Xavier Bettel says, “We need to anticipate the future needs for skills and invest significant sums in lifelong learning and specific digital and AI-related training programs.”
To overcome the challenges presented by AI innovation in the job market, upskilling and enhancing product offerings with an AI edge is key. Denise Hemke, chief product officer at Checkr says, “to be forward-thinking and use AI to gain an advantage over competitors. If there are AI tools in your industry, then do your best to master it and learn how you can use it to your benefit.”
By offering advanced AI training and education, Luxembourg can retain its workforce competitiveness in the digital era. The government, inspired by Singapore’s approach, is implementing initiatives to upskill citizens in AI. “We want to be at the forefront of this development by optimizing the national data market, facilitating the development of skills, boosting investment and collaborating across borders,” says Bettel.
In October 2020, Luxembourg’s Ministry of Labour and the Public Employment Service (ADEM) launched the Future Skills Initiative, offering free training to job seekers, upskilling and reskilling for current and future needs and encouraging cooperation between industries, research, and startups.
Luxembourg also launched its first AI Academy partnering with Microsoft, the Ministry of Civil Service, Devoteam Luxembourg, and Digital Luxembourg, as revealed by Digital Luxembourg[1].
Collaboration among public, private, and nonprofit sectors will prepare Luxembourg’s labor market for AI innovation. Arnaud Lambert, leading the Luxembourg Digital Innovation Hub, highlights its importance. He advocates for nurturing innovation ecosystems to support a skilled workforce, multiculturalism, political neutrality, and advanced IT infrastructure.
Inspired by Singapore’s practice, Luxembourg has established innovation hubs and comprehensive research systems to serve as collaborative spaces for AI-driven research and development. Government-led initiatives, such as the Luxembourg Future Fund and the National Research Fund, provide funding and support to startups and researchers engaged in AI and innovation research-related projects, creating a vibrant ecosystem, where ideas flourish and innovations thrive.
In this evolving landscape, prioritizing ethical AI practices, are necessary to foster responsible innovation, protect privacy and security, and reflect the nation’s significant progress.
The Artificial Intelligence Strategic Vision for Luxembourg, pledges to champion “Ethics Guidelines for Trustworthy AI,” showing proactive support for ethical standards. Committed to this, Luxembourg prioritizes promoting ethical AI practices through robust governance and regulation.
According to Digital Luxembourg’s vision, the government plans to engage with the national data protection authority to establish a technology and ethics advisory committee to address AI-related questions, risks, and societal impacts.
Unifying forces for Luxembourg’s Journey Forward
As Luxembourg navigates the AI revolution, proactive steps are vital to prepare its labor market. By investing in education, fostering innovation, and promoting ethical AI practices, Luxembourg can be among the leading European countries in AI adoption driving sustainable economic growth. Collaboration among policymakers, businesses, academia, and individuals is essential for success. Only through united efforts can Luxembourg fully leverage AI’s transformative potential, shaping a future where innovation thrives, opportunities abound, and the workforce thrives in an AI-driven economy.
References
Air Cargo News (2019). CHAMP and Luxembourg PM promote collaboration. Available at https://www.aircargonews.net/region/europe/champ-and-luxembourg-pm-promote-collaboration/. Retrieved on April 9, 2024.
CEDEFOP (2021). Luxembourg: ‘Future skills’ initiative launched in 2020, European Union. Available at https://www.cedefop.europa.eu/en/news/luxembourg-future-skills-initiative-launched-2020.Retrieved on April 9, 2024.
Digital Luxembourg (N.D.). Artificial Intelligence: a strategic vision for Luxembourg. Available at https://gouvernement.lu/dam-assets/fr/publications/rapport-etude-analyse/minist-digitalisation/Artificial-Intelligence-a-strategic-vision-for-Luxembourg.pdf. Retrieved on April 9, 2024.
Digital Luxembourg (N.D.). Luxembourg’s AI Academy: Crafting the Human Skills Behind AI. Available at https://innovative-initiatives.public.lu/stories/luxembourgs-ai-academy-crafting-human-skills-behind-ai. Retrieved on April 9, 2024.
Glassdoor (2024). 185 Deep learning jobs in Luxembourg. Available at https://www.glassdoor.com.hk/Job/luxembourg-deep-learning-jobs-SRCH_IL.0,10_IN148_KO11,24.htm. Retrieved on April 9, 2024.
Larsen, T.A. (2022). Commission Nationale pour la Protection des Données, GDPR Hub. Available at https://gdprhub.eu/CNPD_(Luxembourg). Retrieved on April 9, 2024.
Martensson, L. (2019). Interview with Xavier Bettel in Happen: “Artificial intelligence for the benefit of all,” The Luxembourg Government. Available at https://gouvernement.lu/en/actualites/toutes_actualites/interviews/2019/12-decembre/20-bettel-happen.html. Retrieved on April 9, 2024.
McKendrick, J. (2024). Prepare For an Expanded Job Market, Thanks To Artificial Intelligence, Forbes. Available at https://www.forbes.com/sites/joemckendrick/2023/05/30/prepare-for-an-expanded-job-market-thanks-to-artificial-intelligence/. Retrieved on April 9, 2024.
PricewaterhouseCoopers (2021). Use of Data Analytics and Artificial Intelligence 2021. Available at https://www.pwc.lu/en/press/press-releases-2021/use-data-analytics-and-ai-2021.html. Retrieved on April 9, 2024.
Simmons & Simmons (2023). AI adoption in the Luxembourg financial sector. Available at https://www.simmons-simmons.com/en/publications/clj6xxhpn0076tpz05c0mskvt/ai-adoption-in-the-luxembourg-financial-sector. Retrieved on April 9, 2024.
[1] An agency now known as Innovative Initiatives focuses on digital skills, data policy, connectivity, and technology.
