The Impact of ArtificialIntelligence on Finland’sLabor Market Théodore Renault SIP/2026/003 IMF Selected Issues Papers are prepared by IMF staff asbackground documentation for periodic consultations withmember countries.It is based on the information available atthe time it was completed on December 10, 2025. This paper isalso published separately as IMF Country Report No 26/7. 2026JAN IMF Selected Issues PaperEuropean Department The Impact of Artificial Intelligence on Finland’s Labor Market, FinlandPrepared by Théodore Renault Authorized for distribution by Alfred KammerJanuary 2026 IMF Selected Issues Papersare prepared by IMF staff as background documentation for periodicconsultations with member countries.It is based on the information available at the time it wascompleted on December 10, 2025. This paper is also published separately as IMF Country Report No 26/7. ABSTRACT:Artificial Intelligence (AI) is rapidly evolving and has the potential to reshape the job landscapeacross a broad range of skills and sectors. While most Finns will benefit from AI adoption, one-fifth of theworkforce is at risk of job displacement. Women, highly educated workers, and non-immigrants are likely tobenefit most. In contrast, men, low-educated people, and immigrants may gain less from AI adoption, primarilybecause they occupy jobs with low exposure. RECOMMENDED CITATION:The impact of Artificial Intelligence on Finland's Labor Market; Renault,Théodore; IMF Selected Issues Paper No.2026/003; Washington, D.C. The Impact of Artificial Intelligenceon Finland’s Labor Market Finland Prepared by Théodore Renault THE IMPACT OF ARTIFICIAL INTELLIGENCE ONFINLANDS LABOR MARKET1 Artificial Intelligence (AI) is rapidly evolving and has the potential to reshape the job landscape acrossa broad range of skills and sectors. While most Finns will benefit from AI adoption, one-fifth of theworkforce is at risk of job displacement. Women, highly educated workers, and non-immigrants arelikely to benefit most. In contrast, men, low-educated people, and immigrants may gain less from AIadoption, primarily because they occupy jobs with low exposure. A.Context 1.Artificial Intelligence (AI) and Generative AI models have made significant advances inrecent years. These models have evolved from traditional machine learning frameworks toperforming advanced cognitive functions, processing vast amounts of data, identifying patterns, andmaking decisions. Compared to previous technological innovations, the speed of AI adoption byworkers and firms is unprecedented (Mish et al., 2025), and companies are in a competitive race todevelop AI-driven products. As a result, AI has the potential to significantly enhance productivityacross various sectors and occupations, potentially reshaping the job landscape. However, it remainsuncertain whether AI technologies will complement or substitute specific occupations, and at whatpace this will unfold. 2.The structure of this chapter is as follows.Section B assesses Finlands digitalpreparedness and potential to harness the benefitsof AI, using the IMFs AI Preparedness Index(AIPI) and other indicators of digital skills, perception, and AI adoption by companies. Section Cexamines the characteristics of the Finnish labor market by mapping an index of exposure andcomplementarity onto occupational microdata. Section D concludes and discusses policyimplications. B.Infrastructure, Human Capital, and Digital Preparedness in Finland 3.Finland is well-prepared to benefit from AI.The IMFs AI Preparedness Index (AIPI) ranksFinland among the most prepared countries for the AI transition, indicating its strong position toharness the benefits and mitigate the risks of AI.2This preparedness, shared with other Nordiccountries, is marked by solid innovation and legal frameworks, alongside a robust digitalinfrastructure (see Figure 1). For example, Finland hosts Europes most powerful supercomputer,LUMI, whose immense computing power drives cutting-edge research in fields such as climatescience and cancer research. 4.The Finnish labor force is well-educated and tech savvy. Finlands vibrant AI ecosystem(e.g. ELLIS Institute, Finnish Center for Artificial Intelligence) actively attracts AI experts throughstrong public-private partnerships involving universities, government, and industry. More broadly,digital skills in Finland are higher than in other European countries for both simple and complextasks. Furthermore, a majority of Finns view positively the use of AI in the workplace, while mostcompanies report satisfaction with the outcomes AI delivers (AI Finland, 2025). This favorableenvironment will likely accelerate AI adoption among workers and firms. 5.AI usage in Finnish companies is among the highest in Europe. In 2024, 25 percent ofFinnish companies with 10 or more employees were using at least one AI technology (see Figure 2).This figure nearly doubled in one year, indicating a rapid pace of adoption among f