8 months ago • 2 mins
A fresh report from Goldman Sachs this week sees AI affecting hundreds of millions of jobs.
What does this mean?
Folk got pretty excited once they realized AI systems like ChatGPT could craft content that rivals human output. After all, the tech has some advantages over flesh-and-blood employees: it doesn’t need a wage, it doesn’t need to rest, and it won’t make off-color jokes to colleagues on staff nights out. No wonder, then, that some see this as a shot in the arm for flagging productivity growth: Goldman Sachs thinks that AI could end up boosting the global economy by 7% over a 10-year period.
But there's a catch. Goldman also thinks that around two-thirds of jobs in the US and Europe could feel AI's cold embrace to some degree, with lawyers and admin staff at particular risk of joining the endangered species list. In fact, if AI delivers on its promise, it could impact the jobs of 300 million full-time workers across major economies.
Why should I care?
For markets: Give and take.
There are fears that AI will churn out a generation of displaced white-collar employees, like manufacturing workers back in the ‘80s. And compared to some academic studies, Goldman's estimates might even be playing it safe. But let’s not be hasty: this kind of innovation could unshackle employees to focus on more valuable work, and displaced workers could wind up re-employed in new fields. History suggests as much anyway: studies show that 60% of workers now have roles that didn't even exist in 1940, thanks in large part to tech-driven job creation.
For you personally: Artificial all-stars.
AI’s poised to turbocharge the tech industry, but some players look set to get a little more oomph than others. Goldman’s betting on companies that can weave AI seamlessly into their existing offerings, scoring points by upselling and improving customer retention. So you might want to keep tabs on the usual tech suspects for your portfolios: Microsoft, Alphabet, Nvidia, Amazon, Salesforce, and Meta.
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