Goldman Sachs has stated that the use of generative artificial intelligence (A.I.) could have an impact on as many as 300 million jobs.
According to a report by Goldman Sachs, up to 25% of work in the United States could be automated through the use of artificial intelligence.
According to a recent report from Goldman Sachs, the widespread use of artificial intelligence in everyday life could potentially have a significant impact on job markets, leading to what the bank refers to as “significant disruption“. The report analyzed job trends in the United States and Europe and found that approximately two-thirds of all jobs could be automated to some extent.
Goldman Sachs analysts have suggested in a research paper that in the United States, most occupations that are exposed could have a significant portion of their workload replaced (between 25-50%). This shift could impact up to 300 million jobs globally, and as a result, changes to labor markets may occur. However, it’s important to recognize that technological progress has historically resulted in the replacement of some jobs but has also created new ones.
AI technology has the potential to enhance labor productivity and increase global GDP by up to 7% in the long run, Goldman Sachs’ report noted.
The jobs most and least affected by A.I. automation
According to the report, some jobs will be more affected than others by automation. Jobs that involve a lot of physical labor are less likely to be significantly impacted.In the United States, office and administrative support jobs have the highest percentage of tasks that could be automated, at 46%. Legal work follows closely behind at 44%, and architecture and engineering tasks come in at 37%.
In terms of vulnerability to automation, the life, physical, and social sciences sector has the highest percentage of tasks that could be automated, at 36%. Following closely behind are business and financial operations, with 35% of tasks potentially being affected.
In contrast, the building and ground cleanings and maintenance sector has the lowest vulnerability to automation, with only 1% of tasks at risk of being automated. Installation, maintenance, and repair work has a slightly higher vulnerability, with 4% of tasks potentially being affected. Construction and extraction is the third least vulnerable industry, with only 6% of tasks at risk of automation.
Europe shows a similar trend to the United States, with the highest potential for automation in clerical support roles, where up to 45% of work could be automated. On the other hand, only 4% of work in the crafts and related trades sector is at risk. The overall automation potential in Europe stands at 24%, slightly lower than the United States’ average of 25%.
The countries that have been most heavily impacted
A report by Goldman Sachs suggests that the impact of automation through AI differs across countries. Developed markets (DMs) are more exposed to automation than emerging markets (EMs), with 18% of global work potentially being automated by AI, based on employment numbers.
Hong Kong, Israel, Japan, Sweden, and the US are expected to be the most affected countries, while mainland China, Nigeria, Vietnam, Kenya, and India are less likely to see AI take over their jobs. However, the report cautions that the extent of disruption caused by AI is uncertain and will depend on its actual capability and adoption timeline. The level of AI’s technological advancement and its practical usage will determine its ultimate impact on the labor market.
Source of Story ; Goldman Sachs Report
