Artificial intelligence (AI) is rapidly evolving and has the potential to drastically alter labor markets around the world. According to a Goldman Sachs study, around two-thirds of current jobs in the United States and the European Union are subject to some level of AI automation.The administrative and legal sectors are likely to be the most impacted, with AI replacing 46% of administrative positions and 44% of legal jobs. Physically demanding occupations such as construction and maintenance, on the other hand, have lower exposure rates of 6% and 4%, respectively, according to CNBCTV18.
Meanwhile, AI is viewed as a tool for boosting economic growth. AI, according to Goldman Sachs, has the potential to boost yearly global GDP by 7% over a ten-year period. Substantial labor cost savings, new job creation, and higher productivity for non-displaced workers are viewed as growth drivers.
According to the research, AI will affect almost half of all activities performed by individuals across all industries, and automation will affect nearly all vocations. Yet, existing shown technology can only fully automate roughly 5% of vocations. Although the amount of AI’s impact will eventually be determined by its capabilities and adoption timetable, both are currently unknown. Over a 10-year timeframe, generative AI is predicted to increase yearly worker productivity growth by little under 1.5 percentage points in the United States.
Goldman Sachs is testing ChatGPT-style A.I. in-house.
Goldman Sachs’ Chief Information Officer, Marco Argenti, told CNBC last week that the company’s software engineers have been experimenting with generative AI technologies to write lines of code autonomously. Unfortunately, the technology is still in the proof-of-concept stage and is not yet suitable for commercialization. In response to written cues from users, generative AI products generate human-like text or visuals.
Meanwhile, JPMorgan, Goldman Sachs, Citigroup, and Bank of America have reportedly prohibited their employees from using ChatGPT and comparable products. Despite this, ChatGPT and other generative AI technologies have the potential to disrupt the financial services industry in a variety of ways, from investment decisions to customer service automation. Argenti declined to say which items Goldman Sachs has been using or which division of the bank is employing the technology.