Goldman Sachs released a report that predicts 300 million jobs will be lost or downgraded due to the rise of artificial intelligence.
The report suggests that automation will have a significant impact on the labor market, with the largest losses in the low and middle-skilled sectors.
Key Points:
- Goldman Sachs predicts that 300 million jobs will be lost or degraded due to the rise of artificial intelligence.
- Automation is expected to impact the labor market significantly, with the largest losses in low and middle-skilled jobs.
- The report suggests that the increased use of artificial intelligence will create new jobs, but these will require higher levels of skills.
- Developing countries may be more vulnerable to job losses, as they have a higher proportion of low-skilled workers.
- Governments and businesses need to take action to ensure that workers are equipped with the skills needed for the jobs of the future.
Personal Insights:
- Ever since the industrial revolution, there has been workplace change
- Now it’s just faster than ever
- Skills pay the bills. Lifelong learning is key.
- No one’s going to get to go to college, get a degree and work for 5, 10 or 20 years anymore w/o changing things up every couple years.
Article Highlights:
- Office administrative support, legal, architecture and engineering, business and financial operations, management, sales, healthcare and art and design are some sectors that will be impacted by automation.
- The combination of significant labor cost savings, new job creation, and a productivity boost for non-displaced workers raises the possibility of a labor productivity boom, like those that followed the emergence of earlier general-purpose technologies like the electric motor and personal computer.
- National Bureau of Economic Research, claims that 50% to 70% of changes in U.S. wages since 1980 can be attributed to wage declines among blue-collar workers replaced or degraded by automation.
- Truck and cab drivers, cashiers, retail sales associates and people who work in manufacturing plants and factories have been and will continue to be replaced by robotics and technology.
- Driverless vehicles, kiosks in fast-food restaurants and self-help, quick-phone scans at stores will soon eliminate most minimum-wage and low-skilled jobs.
- Management consulting giant PriceWaterhouseCoopers reported, “AI, robotics and other forms of smart automation have the potential to bring great economic benefits, contributing up to $15 trillion to global GDP by 2030.” However, it will come with a high human cost. “This extra wealth will also generate the demand for many jobs, but there are also concerns that it could displace many existing jobs.”
- It is believed that over 50 million Chinese workers may require retraining, as a result of AI-related deployment.
- The U.S. will be required to retool 11.5 million people in America with the skills needed to survive in the workforce
- Wells Fargo WFC study, the bank concluded that robots would eliminate 200,000 jobs in the banking industry within the next 10 years. This has already adversely impacted highly paid Wall Street professionals, including stock and bond traders.
