AI could replace 300 million workers – Goldman Sachs
Artificial intelligence (AI) could cause “significant disruption” to the labor market and jeopardize millions of jobs around the world, if it lives up to its potential, Goldman Sachs has claimed.
Generative AI such as ChatGPT could replace up to 300 million full-time jobs worldwide, according to estimates shared in a report published by the investment bank on Sunday. The technology, which can independently create new material, represents “a major advancement with potentially large macroeconomic effects,” Goldman Sachs argued.
Roughly two-thirds of jobs in the US and Europe are exposed to “some degree of AI automation,” while generative AI could be used as a substitute for a quarter of current jobs.
“Despite significant uncertainty around the potential of generative AI, its ability to generate content that is indistinguishable from human-created output and to break down communication barriers between humans and machines reflects a major advancement with potentially large macroeconomic effects,” Goldman Sachs said.
At the same time, the report states that most industries are only “partially exposed to automation,” making it more likely that they will be “complemented rather than substituted by AI.” Some 7% of positions in the US could be replaced by AI, with 63% being complemented by the innovative technology and 30% being unaffected by it, according to estimates.
Goldman Sachs also claimed that historically positions that were displaced by automation were offset by the creation of new jobs and occupations, increasing the value of goods and services.
“The combination of significant labor cost savings, new job creation, and higher productivity for non-displaced workers raises the possibility of a productivity boom that raises economic growth substantially,” the report said.
According to Goldman Sachs, widespread adoption of AI could eventually increase annual global GDP by 7%.
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