Goldman Sachs: AI to cause 300M job losses, but GDP to rise 7%.

Getting your Trinity Audio player ready...

According to a recent report by Goldman Sachs, the ascendance of generative AI could lead to significant disruptions in the workforce in the US and Europe. The report suggests that the fast-growing technology could lead to the loss or diminishment of 300 million jobs. However, Goldman Sachs also contends that automation creates innovation, leading to new jobs and company cost savings. If AI continues to grow, it could add 1% to the US GDP by 2030 and increase the annual global GDP by 7%.

However, there are also downsides to the rise of AI. According to the National Bureau of Economic Research, automation technology has been the primary driver of US income inequality over the past 40 years. The report claims that 50% to 70% of changes in US wages since 1980 can be attributed to wage declines among blue-collar workers replaced or degraded by automation. The emergence of sophisticated technologies such as AI, robotics, and industrialisation has caused a vast chasm in wealth and income inequality, which looks set to accelerate. For now, college-educated, white-collar professionals have been spared the same fate as non-college-educated workers. Still, low-skilled jobs such as truck and cab drivers, cashiers, and retail sales associates are being replaced by technology.

According to the World Economic Forum, a new generation of intelligent machines, fueled by rapid advances in AI and robotics, could potentially replace a large proportion of existing human jobs, and management consulting giant PriceWaterhouseCoopers reported that AI, robotics, and other forms of intelligent automation have the potential to contribute up to $15 trillion to global GDP by 2030, but also come with a high human cost. Millions of workers in Brazil, Japan, Germany, and the US will need assistance with the changes wrought by AI, robotics, and related technology.

In conclusion, the rise of AI could have significant consequences for the workforce, leading to job losses and wage declines for many while bringing benefits such as cost savings and new job creation for others. It remains to be seen how society will adapt to the changes brought about by AI and how governments and corporations will address the income inequality caused by automation technology.


Tell Me More