The rapid advances in artificial intelligence (AI) have raised concerns about job security. A recent report by Goldman Sachs suggests that generative AI could affect up to 300 million jobs globally. This powerful technology has the potential to automate a significant portion of tasks in many industries, leading to considerable labor market disruptions.
According to Goldman Sachs reports, two-thirds of jobs in the US are vulnerable to AI automation and up to 50 per cent of the workload could be replaced. But most jobs and industries are only partially exposed to automation, making them more likely to be complemented by AI rather than replaced. It is estimated that 7 per cent of US jobs could be replaced by AI, while 63 per cent would be complemented, and 30 per cent would remain unaffected.
In the US, the job sectors most at risk for task replacement are office and administrative support positions, legal positions, and architecture and engineering jobs. Jobs with the lowest exposure to AI include cleaning and maintenance, installation and repair, and construction. In Europe, around 45% of tasks in clerical support jobs can be automated.
Generative AI like ChatGPT and Dall-E, is capable of creating new content autonomously, and hence, is considered a major technological advancement with substantial macroeconomic implications. Reportedly, in the next decade, the widespread adoption of AI could increase the global value of goods and services by 7 per cent. Generative AI is expected to contribute to a significant increase in global GDP. Furthermore, if AI is broadly implemented, annual labor productivity growth in the United States could increase by nearly 1.5 percentage points over the next ten years.
Goldman Sachs report revealed 60 per cent of the workforce is employed in occupations that did not exist in 1940, suggesting that AI could automate one-quarter of all tasks in the US and Europe. It is important to note that not all jobs are at risk of being replaced by AI. Occupations such as development, cleaning, and maintenance are less likely to be fully supplanted by AI.
While the advent of generative AI may lead to job losses, it is also expected to drive innovation, create new opportunities, and increase overall productivity.
