A new report by Goldman Sachs warns that generative AI technologies such as ChatGPT could replace one in four jobs in the United States and the Eurozone, putting 300 million full-time workers at risk of losing their jobs. The report states that lawyers and executives are among the most vulnerable.
According to the authors of the report, Joseph Briggs and Thewet Kothanani, generative AI technology can create content like humans and will continue to increase output, ultimately boosting annual gross domestic product (GDP) by 7% over a 10-year period. However, the impact on the job market is expected to be significant.
Goldman Sachs found that approximately two-thirds of jobs in the US and Europe face varying degrees of risk from generative AI technology based on data on thousands of occupational responsibilities. Although generative AI technology will help replace less than half of the workload of most people, causing most people to continue to have jobs, some may have more time to focus on productivity activities.
In the US, generative AI technology will account for 63% of the workforce. However, the other 30% of physically demanding work or outdoor work will not be directly affected, but could still be impacted by other forms of generative AI technology. About 7% of the American workforce has jobs that could be replaced by generative AI technology for at least half of their workload, putting them at risk of losing their jobs.
Europe will be similarly affected, according to Goldman Sachs. Globally, the investment bank found that about one in five jobs could be replaced by generative AI, accounting for approximately 300 million full-time jobs among large economies.
The rise of generative AI technology presents both opportunities and challenges for businesses and individuals alike. While it can boost productivity and GDP, it could also displace millions of workers, leading to significant economic and social impacts. As such, it is crucial that policymakers and businesses prepare for the potential consequences of this technological shift.