Goldman Sachs recently released a report that highlights the potential impact of Artificial Intelligence (AI) on the job market, predicting that it could affect hundreds of millions of jobs globally. 

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While AI systems such as ChatGPT are seen as advantageous due to their ability to produce content that rivals human output and their lack of need for wages and rest, the report warns that two-thirds of jobs in the US and Europe may be impacted by AI to some degree. The report singles out legal and administrative roles as particularly at risk, but notes that the impact could extend to other industries as well.

Despite these warnings, some experts argue that the rise of AI could boost global productivity by up to 7% over a ten-year period, leading to an increase in economic growth. However, this prediction does not necessarily negate the potential impact on jobs, and the report notes that up to 300 million full-time workers across major economies may be affected by the rise of AI. These findings have led to concerns about the creation of a generation of displaced white-collar employees, akin to the situation faced by manufacturing workers in the 1980s.

Despite these concerns, some experts argue that this kind of innovation could lead to employees focusing on more valuable work, leading to a potential shift towards higher-skilled roles. Displaced workers may also find employment in new fields, as technological advances have previously led to job creation in areas that did not exist previously. For example, studies show that 60% of workers currently hold roles that were not in existence in 1940, thanks to tech-driven job creation.

In light of these predictions, investors may want to pay close attention to companies that can incorporate AI into their existing offerings. Goldman Sachs has identified Microsoft, Alphabet, Nvidia, Amazon, Salesforce, and Meta as companies that may benefit from the rise of AI, as they are likely to be able to weave AI seamlessly into their existing business models, scoring points by upselling and improving customer retention. These companies may become the “artificial all-stars” of the tech industry, poised to take advantage of the shift towards AI.

In conclusion, while the potential impact of AI on the job market is still unknown, it is clear that AI will continue to play an important role in the global economy. While there are concerns about the potential displacement of workers, history has shown that technological advances have led to new job opportunities and an overall increase in productivity. Investors and businesses should remain vigilant and continue to adapt to the changing landscape of the job market, taking advantage of new opportunities as they arise.

P.S.

We couldn’t resist but ask Chat GPT about it’s own take on the situation from a perspective of benevolent and malevolent version of an AI.

Take a look at the full convo:

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