According to a report by investment bank Goldman Sachs, the adoption of Artificial Intelligence (AI) could lead to the replacement of around 300 million full-time jobs globally. The report suggests that up to 25% of work tasks in the US and Europe could be automated, resulting in a productivity boom and the creation of new jobs. Generative AI, capable of creating content that is indistinguishable from human work, is considered a major advancement.
The UK government has been promoting investment in AI to drive productivity across the economy, while attempting to address public concerns about its impact on jobs. The report notes that the impact of AI will vary across different sectors, with administrative and legal professions being the most vulnerable to automation.
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However, it suggests that generative AI is likely to have similar effects on a broader set of creative tasks, such as journalism and art, leading to more competition and potentially driving down wages. While the long-term impact of AI remains uncertain, the report highlights the potential living-standards gains from higher-productivity work and cheaper-to-run services, as well as the risk of falling behind if other firms and economies better adapt to technological change.
Despite the potential for job displacement, the report suggests that AI could increase the total annual value of goods and services produced globally by 7%. Furthermore, the report notes that while some jobs may be lost to automation, the technology could also create new types of work. For example, AI could lead to the emergence of new professions focused on designing, building, and managing intelligent systems.
In addition, the report highlights the potential for AI to enhance productivity and efficiency across a range of industries, leading to increased economic growth and competitiveness.4
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However, the report also highlights the need for policymakers to address the social and economic implications of AI. Specifically, the report emphasizes the need for retraining programs and safety nets to support workers who may be displaced by automation. It also calls for investments in education and training to prepare the workforce for the changing demands of the labor market.
