Artificial Intelligence (AI) is poised to disrupt the global job market, potentially replacing the equivalent of 300 million full-time jobs, according to a report by investment bank Goldman Sachs. The report suggests that AI could automate a quarter of work tasks in the US and Europe, leading to productivity gains but also creating new job opportunities.
The report highlights generative AI as a major advancement, as it is able to create content that is indistinguishable from human work. However, the impact of AI on employment prospects will vary across different sectors. The report notes that 46% of tasks in administrative and 44% in legal professions could be automated, but only 6% in construction and 4% in maintenance.
Despite concerns about job displacement, the UK government is keen to promote investment in AI as a means of driving productivity across the economy. “We want to make sure that AI is complementing the way we work in the UK, not disrupting it – making our jobs better, rather than taking them away,” says Technology Secretary Michelle Donelan.
While the impact of AI on the job market is uncertain, it could lead to lower wages in certain sectors. For example, the report suggests that generative AI could increase competition among journalists, driving down wages unless there is a significant increase in demand for such work.
However, the long-term impact of AI remains highly uncertain, and all firm predictions should be taken with a pinch of salt, according to Torsten Bell, chief executive of the Resolution Foundation think tank. “We do not know how the technology will evolve or how firms will integrate it into how they work,” he says. “That’s not to say that AI won’t disrupt the way we work – but we should focus too on 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.”
In conclusion, the impact of AI on the job market is complex and multifaceted, with both potential benefits and risks. While some jobs may be displaced, new job opportunities may also arise. Ultimately, the impact of AI on the job market will depend on a range of factors, including how the technology evolves and how firms and economies adapt to its use.
