Proposal sought for incorporating a novel electronic data-processing system according to the Commission's recommendation.
In a rapidly evolving world, Artificial Intelligence (AI) is reshaping the employment landscape, with significant implications for various industries and job roles.
A report published by Goldman Sachs, titled "How to Future-Proof Your Career in an AI-Driven World," suggests that AI is starting to replace office jobs, particularly entry-level positions. This trend has been observed in the tech sector, where the employment peak has been reached and is now declining due to AI. Since the launch of ChatGPT in November 2022, the tech sector's share of total U.S. employment has been declining.
However, it's important to note that this decline doesn't necessarily mean a uniform decline across the tech sector. Demand for AI specialists like machine learning engineers remains robust, indicating a shift rather than a decline in the tech industry. Overall tech job postings are down 36% since early 2020, partly due to the integration of AI tools that automate traditional tasks.
AI's impact on employment extends beyond the tech sector. Positions such as administrative assistants, customer service representatives, and bookkeepers are rapidly disappearing, disproportionately impacting youth employment. Entry-level hiring has been cut by up to 73% in some sectors.
The report obtained by Business Insider suggests that AI will impact office industries like tech, law, and finance. Goldman Sachs estimates that AI will displace between 6% and 7% of all U.S. workers over the next decade, which translates to 300 million full-time jobs globally.
Despite these predictions of massive job displacement, recent studies suggest that generative AI tends to augment human work more than fully automate it, especially in high-skill roles. Automation risks are highest in routine clerical and administrative tasks.
The unemployment rate for 20-30 year-olds in tech has risen by nearly 3% since early 2024, according to the Goldman Sachs report. This trend indicates that AI is eliminating jobs in the U.S., particularly for young tech workers just starting their careers.
However, the overall impact depends heavily on policy responses, corporate strategies, and consumer demand. Without proactive adaptation, displaced workers may struggle to find new jobs in an AI-transformed economy. There is a temporal mismatch between how fast AI changes the labor market and the slower pace of workforce retraining and adaptation programs, causing significant transitional unemployment and skill gaps.
In conclusion, models and expert reports suggest AI will displace millions of jobs, especially in routine and entry-level positions across multiple industries, while simultaneously creating demand for new AI and tech skills. The net impact on employment varies by sector and the degree to which AI augments vs. automates human labor.
News of a declining tech sector employment, partly due to the integration of AI tools, has been reported by Business Insider. The report, titled "How to Future-Proof Your Career in an AI-Driven World," suggests that AI will impact office industries such as tech, law, and finance, leading to job displacement especially in routine and entry-level positions. Technological advancements in artificial-intelligence are reshaping the employment landscape, resulting in a shift in job demands towards AI specialists.
