Artificial intelligence has become a popular topic of discussion lately, with generative AI chatbots such as ChatGPT being able to perform a wide range of tasks like summarizing scientific articles, debugging faulty code, and creating Microsoft Excel formulas with ease. However, the impact of AI on employment is also a matter of concern, with Goldman Sachs estimating that approximately 300 million jobs could be replaced by AI.
The investment bank’s research report suggests that AI can automate up to 25% of the entire labor market, with administrative jobs being the most vulnerable (46%), followed by legal jobs (44%), and architecture and engineering professions (37%). However, labor-intensive careers like construction (6%), installation and repair (4%), and maintenance (1%) are least likely to be affected by AI.
The report also indicates that 18% of the global workforce could be automated with AI, and in countries like the U.S., U.K., Japan, and Hong Kong, the number could be as high as 28%. Despite these numbers, the report suggests that a balanced and mutually beneficial relationship between workers and AI is possible. Occupations that are only partly exposed to automation can use their free time to increase their productivity, resulting in a win-win situation.
For those concerned about their job security, Goldman Sachs predicts that displaced workers will find new jobs that emerge as a direct result of widespread AI adoption. Additionally, nondisplaced workers may become more productive, leading to higher levels of labor demand and increased employment opportunities for those who were displaced.
The rise of IT created demand for software devs, leading to higher education, but now AI threatens to replace 300M jobs. Tech moguls like Elon Musk are calling for a pause on AI experiments, while the US Chamber of Commerce calls for federal regulation to ensure job, national, and economic security. The generative AI technology may be game-changing, but where do we draw the line?
