According to a recent Goldman Sachs report, 300 million jobs could be affected by generative AI.
According to the bank, some form of AI automation might modify almost two-thirds of present job roles and possibly replace as much as a quarter of present employment.
Yet, the very same analysis also observed that new professions resulting from technological innovation have contributed to the greatest amount of employment levels and that automation has also a tendency to generate fresh employment opportunities.
The institution stated in a recent statement that the combination of the lower cost of labor, the new jobs, and the increased productivity of those employees who do maintain their roles might result in a “productivity boom that raises economic growth substantially.”
According to the institution, this may potentially result in a rise of 7 percent in the yearly global GDP. But, it clearly stated that any expansion will be determined by how efficiently AI is adapted and also how powerful it really is.
In a new report titled “The Potentially Large Effects of Artificial Intelligence on Economic Growth,” four Goldman Sachs experts made these predictions.
It acknowledges that it is difficult to estimate accurately what will happen as generative AI advances. But nevertheless, if it is capable of fulfilling its potential, it might have “potentially large macroeconomic effects” and create “significant disruption.”
The bank’s estimations have relied on a somewhat restricted grasp of what AI might truly do. Only generative AI, not the other related technologies like robotics that might raise that figure much higher, is included in its assumption that the proportion of jobs open to automation might reach as high as 35%.
Technologies like ChatGPT and Dall-E, which can generate text and graphics comparable to those generated by human beings, are examples of generative AI.
Most likely, AI would “complemented rather than displace” human labor in most areas, according to their estimates. This is because the majority of jobs are only partly susceptible to automation, which makes it hard for AI systems to fully carry out their responsibilities.
The impacts also will fluctuate dramatically among multiple areas. Nonetheless, that is based primarily on the speculation that the AI would not be capable of helping outdoors, which could be achievable if robots keep getting better.
They estimate that although AI will affect 46 percent of occupations in administration, it’s only going to affect 6 percent of employment in construction.
Earlier this month, the financial advisory arm of the Goldman Sachs Group Inc. (GS.N) was among the potential buyers for the $10 billion fast food chain Subway, which was offered for sale in the United States.
Further listed as interested parties in the report were Bain Capital, TPG, and TDR Capital. Goldman Sachs and TPG both did not respond. Subway, Bain Capital, and TDR were approached by Reuters for comments, yet none of them answered straight away.