AI and Labor Costs: A Threat to French Jobs

The Impact of AI on Intermediate Jobs in France

In France, artificial intelligence is primarily targeting intermediate jobs, a trend exacerbated by the high cost of labor. Contrary to the common belief that AI mainly threatens interns and low-level positions, it is mid-career roles that are the most vulnerable. French companies, faced with significant payroll costs, see AI as an attractive economic alternative. For example, a manager with a few years of experience can cost around 10,000 euros per month to their employer, including charges. According to Ayming, employer social contributions account for 44.3% of gross payroll. In comparison, a subscription to ChatGPT Team costs only $25 per month. This cost difference drives companies to seriously consider using AI tools to replace certain positions.

Every day, companies are asking whether an AI-equipped intern can perform the tasks of an experienced junior. The answer, increasingly, is yes. This dynamic highlights a major economic issue: the higher the labor cost, the more attractive AI becomes as a solution for employers looking to optimize their expenses.

The Indian Example: A Striking Contrast

India presents an interesting case that contrasts with the French situation. With 850 million internet users, India is OpenAI's largest market after the United States, and the download of ChatGPT has increased by 587% in a year. However, Indian companies are reluctant to invest heavily in AI for their employees. The main reason is the low cost of labor, with an average monthly salary of around 230 euros. In this context, AI is not seen as a necessary investment to boost productivity. In August 2025, OpenAI adapted its offering by launching ChatGPT Go in India at 399 rupees per month, or less than $5, compared to $20 for the standard Plus subscription. This paradox underscores that AI does not uniformly affect jobs worldwide but hits harder where labor costs are high.

In India, the adoption of AI is primarily individual rather than as a lever for organizational transformation. This reveals an often-overlooked economic truth: AI tends to replace jobs where the return on investment is highest, that is, in regions where labor is expensive.

France Facing Increased Vulnerability

Data from Goldman Sachs shows that countries with advanced IT infrastructure and high labor costs, like France, are the most affected by automation. The UK has already seen 11% of its full-time jobs impacted by AI in 2024, while in the United States, 1.9 million positions were affected by early 2025. In France, the hourly labor cost is 38.4 euros, one of the highest in the European Union, making the country particularly vulnerable. Moreover, the skills of French workers are declining, as evidenced by the 2024 PISA rankings, where France ranks 23rd in mathematics, 28th in reading, and 26th in science. Since 2018, the country has lost 21 points in mathematics, the largest drop ever recorded. This combination of high costs and declining skills creates an environment conducive to job substitution by AI.

A Blind Spot in French Policy

Despite the celebration of the French AI ecosystem and investments in cutting-edge technologies, the real issue lies in the use of AI by companies. In a country where labor costs are high, AI is more likely to be used to replace workers rather than to enhance their productivity. Intermediate jobs, such as analysts, junior lawyers, developers, and consultants, are particularly threatened. The World Economic Forum estimates that 85 million jobs could be displaced globally by AI by the end of 2025. France, with its high costs and declining skills, could bear a disproportionate share of this shock. The signals are clear, and it is crucial for France to adapt its structures to avoid massive job destruction.

Each passing day without structural reform of the labor market worsens the diagnosis. French intermediate jobs, those with three to seven years of experience, are in the crosshairs. If companies heavily favor AI over employment, the impact on consumption and growth will be severe. Other countries have opted for more flexible labor markets, less crushing burdens, and more demanding training. They will absorb the AI revolution differently, perhaps even creating jobs where we will destroy them.