AI to cost the world two-thirds of jobs, Goldman Sachs highlights hardest hit sectors
1 min read 27 Mar 2023, 10:07 PM ISTLast week, Goldman Sachs informed the company's software engineers have been experimenting with ChatGPT-like AI tools to automatically generate lines of code.
PremiumThe rapid development of artificial intelligence (AI) has the potential to significantly disrupt labor markets worldwide. Approximately two-thirds of current jobs in the US and the European Union are exposed to some degree of AI automation, according to a research conducted by Goldman Sachs.
Administrative and legal sectors are expected to be the most impacted, with 46% of administrative jobs and 44% of legal jobs being substitutable by AI. In contrast, physically-intensive professions such as construction and maintenance have a lower exposure of 6% and 4%, respectively, as reported by CNBCTV18.
Meanwhile, AI is also seen as a tool to enhance economic growth. According to Goldman Sachs, AI could potentially increase annual global GDP by 7% over a 10-year period. Significant labor cost savings, new job creation, and higher productivity for non-displaced workers are seen as the areas that will boost growth.
The research also shows that AI will impact roughly half of the activities people do across all sectors, and nearly all occupations will be affected by automation. However, only about 5% of occupations could be fully automated by currently demonstrated technologies. Although the size of AI’s impact will ultimately depend on its capability and adoption timeline, both remain uncertain at this point.
In the US, generative AI is expected to raise annual labor productivity growth by just under 1.5 percentage points over a 10-year period.
Goldman Sachs experimenting with ChatGPT-style A.I. in house
Last week, Goldman Sachs' Chief Information Officer, Marco Argenti, told CNBC that the company's software engineers have been experimenting with generative AI tools to automatically generate lines of code. However, the technology is currently in the proof-of-concept stage and not yet ready for production. Generative AI products produce human-like text or images in response to written prompts from users.
Meanwhile, some banking giants like JPMorgan, Goldman Sachs, Citigroup, and Bank of America have reportedly restricted staff from using ChatGPT and similar products. Despite this, ChatGPT and other generative AI tools have the potential to shake up the financial services industry, from investment decisions to customer service automation.
Argenti declined to specify which products Goldman Sachs has been using or which bank division is utilizing the technology.
