The launch of OpenAI’s ChatGPT has created a significant buzz, with tech giants investing billions of dollars in generative artificial intelligence (AI). A report by Goldman Sachs (GS) predicts that if generative AI achieves the desired productivity through task automation, it may impact 300 million full-time jobs globally.
AI’s Potentially Disruptive Impact on Jobs
“If generative AI delivers on its promised capabilities, the labor market could face significant disruption,” according to a Goldman Sachs report by Joseph Briggs and Devesh Kodnani. As per the report, labor productivity due to widespread AI adoption could fuel a 7% or about $7 trillion increase in the annual global gross domestic product (GDP) over 10 years.
The report used data from the U.S. and Europe markets and extrapolated it to derive global estimates. Based on occupational tasks in the U.S. and Europe, the report projected that roughly two-thirds of the current jobs are exposed to some degree of AI automation and that generative AI, like ChatGPT, “could substitute up to one-fourth of current work.”
Although the impact of AI on the labor market could be significant, Goldman Sachs analysts feel that most jobs and industries are “only partially exposed to automation and are thus more likely to be complemented rather than substituted by AI.” They expect 7% of the current U.S. workforce to be substituted by AI, 63% to be complemented, and 30% to remain unaffected.
The report added that roughly two-thirds of U.S. occupations are exposed to some level of AI automation. About 25% to 50% of the workload in these occupations could be replaced by AI. Office and administrative support, legal, and architecture and engineering categories feature among the top three industry employments exposed to AI automation, per Goldman Sachs.
Another study conducted by researchers at the University of Pennsylvania and OpenAI revealed that about 80% of the U.S. workforce could see at least 10% of their work tasks being impacted by the introduction of large language models (LLMs), like generative pre-trained transformers (GPTs). Furthermore, about 19% of workers may see at least 50% of their tasks impacted by LLMs.
Overall, Goldman Sachs’ report highlighted the massive economic potential of generative AI “if it delivers on its promise.” Nonetheless, the report cautioned that the “impact of AI will ultimately depend on its capability and adoption timeline.”
In addition to Microsoft (MSFT), which is investing billions of dollars in OpenAI, other tech behemoths like Alphabet (GOOGL) (GOOG), Alibaba (BABA), and Baidu (BIDU) are developing ChatGPT-like technologies to capture the opportunities in the generative AI world.
Using TipRanks’ Stock Comparison Tool, let’s have a look at Wall Street’s ratings for these four companies that are rushing to disrupt the tech world with generative AI. Interestingly, Wall Street is bullish about all these four tech behemoths.
