AI may replace 300 million jobs globally, economists predict

Kathmandu: The latest advancements in artificial intelligence (AI) could affect as many as 300 million full-time jobs around the world, according to Goldman Sachs economists.

In a report released on Sunday, Goldman Sachs economists predicted that globally 18% of works could be computerized, possibly replacing about 300 million full-time jobs. As per the report, the effects of automation of the jobs may be felt more deeply in the advanced economies than emerging markets.

The report highlights that the impact of AI will differ among sectors, with white collars workers at more risk than the manual workers. It predicts that approximately 46% of tasks in administrative and 44% in legal professions could be automated, while only 6% in construction and 4% in maintenance could be automated.

The report estimates that around two-thirds of current jobs in the United States and Europe are ‘exposed to some degree of AI automation,’ and up to a quarter of all work could be done by AI completely.

Goldman Sachs economists also predicted that if generative artificial intelligence ‘delivers on its promised capabilities, the labor market could face significant disruption’, referring to the platform like ChatGPT.

ChatGPT has already prompted many businesses to rethink how people should work every day. This platform, which enables individuals with average writing abilities to create essays and articles, will lead to more competition in the professions like journalism. The rise in competition may lead to a reduction in wages if there lacks substantial surge in demand for such services.

Further use of such AI will likely lead to job losses, the Goldman Sachs economists said. But they noted that technological innovation that initially displaces workers has historically also created employment growth over the long haul.

While workplaces may shift, widespread adoption of AI could ultimately increase labor productivity, and boost global GDP by 7% annually over a 10-year period.

‘Although the impact of AI on the labor market is likely to be significant, most jobs and industries are only partially exposed to automation and are thus more likely to be complemented rather than substituted by AI,’ the economists added.