A recent report from Goldman Sachs, one of the largest US banks, found that artificial intelligence may replace over 300 million full-time jobs worldwide. “If generative AI delivers on its promised capabilities, the labor market could face significant disruption,” states the report.
The potential impact of AI is very deterministic, though. Unless mass adoption of the technology is achieved, it would remain just another technology used in certain industries.
Goldman Sachs states that “worker displacement from automation has historically been offset by creation of new jobs.” Such an example is cars, which replaced the jobs of those driving a horse and carriage but made way for streamlined travel along with mechanics, technicians, engineers, and many other jobs relating strictly to the automobile industry.
Generative AI May Raise Labor Productivity
Despite potentially replacing full-time jobs, generative AI, such as ChatGPT, may drive a 7% increase in global GDP – almost $7T. This would lift productivity rates by 1.5% over the following 10 years.
“Although the impact of AI on the labor market is likely to be significant, most jobs and industries are only partially exposed to automation and are thus more likely to be complemented rather than substituted by AI.
Generative AI can streamline business workflows, automate routine tasks and give rise to a new generation of business applications.”
The combination of saving money on labor costs, new job creation, among other factors, may see a boom in economic growth.
What Industries Will AI Impact The Most?
The report found that AI will significantly affect admin and legal work, replacing 46% and 44% of jobs, respectively. Although jobs such as construction and maintenance may only have 6% and 4% of jobs replaced.
This is due to the technology-driven side of these jobs, where most work is based around documents that follow a standard format – something artificial intelligence could streamline. On the other hand, physical jobs are very hard to replace due to the tricky nature of actually working with your hands in this field – until robots can work more efficiently than humans in plumbing, formwork, and the such – these fields remain mostly untouched by the boom in artificial intelligence.
