U.S. investment bank %GoldmanSachs ($GS) says in a new report that generative %ArtificialIntelligence (A.I.) could lead to the loss of 300 million jobs globally and replace 7% of the American workforce.
“If generative A.I. delivers on its promised capabilities, the labor market could face significant disruption,” the investment bank said in a research note to clients.
The leading U.S. investment bank, which has one of the biggest research teams on Wall Street, says that two-thirds (67%) of U.S. jobs are exposed to automation by generative A.I. applications such as %ChatGPT.
“Some 7 percent of U.S. jobs could be replaced by A.I.,” reads Goldman Sachs’ report.
Generative A.I., which can create material on its own ranging from poems to video games, represents a major technological advance for society and brings with it large macroeconomic disruptions, said Goldman Sachs.
Generative A.I. captured the public’s attention with the launch last November of privately held tech firm OpenAI’s ChatGPT, a chatbot built on a powerful A.I. large language model engine.
%Microsoft ($MSFT) has invested $10 billion in OpenAI and is using its technology to power its Bing search engine, enabling people to generate emails, write articles, and develop presentations.
Other tech giants ranging from Alphabet (GOOGL) to China’s %Baidu ($BIDU) have also launched generative A.I. platforms and %Chatbots in recent months.
Goldman Sachs’ report concludes that one-quarter (25%) of all tasks performed in the U.S. and Europe could be automated by A.I. within 10 years.
Goldman Sachs’ stock has declined 3% over the last 12 months and currently trades at $321.14 U.S. per share.