Generative AI could replace 300 million jobs: Goldman Sachs report

Generative AI has already made a huge impact on how technology is used on a daily basis. Soon, it will disrupt the labour market, according to a Goldman Sachs report, and could replace 300 million jobs globally.

The report predicts that about two-thirds of jobs in the US and Europe are exposed to AI automation. A partial but significant part of the workload (25-50%) of most of these jobs can be replaced by AI, it said.

One-fourth of the jobs in the US and Europe right now can be substituted by AI, the report added.


The report also predicted that generative AI would have a positive impact on world Gross Domestic Product (GDP), noting that its widespread adoption could lead to a 7% or $7 trillion increase in global GDP.

The report also suggested that AI could raise annual US labour productivity growth by just under 1.5 percentage points, over a period of 10 years, if it is adopted on a wide scale.

Which jobs will be impacted?

According to the Goldman Sachs report, jobs will only partially be impacted by AI, and that too, not all of them. For example, jobs such as construction, cleaning and maintenance cannot be replaced completely by AI.

The report talks about the percentage of work that can be automated for each industry segment. The percentage of tasks that can be automated and eventually replaced by AI in the US was highest for jobs in office administration and support, at 46%.

According to the report, 44% of tasks in legal jobs in the US can be automated and replaced by AI.

Also in the US, a third of the tasks in community and social services, as well as management, can be automated and hence are replaceable by AI.

About 45% of tasks in jobs related to clerical support in the Euro area can be automated, according to the report.