Analysts at Goldman Sachs Group Inc. believe that the widespread adoption of artificial intelligence technologies could contribute to a surge in productivity and an acceleration of the global economy.
The combination of significant labor cost savings, new job creation, and higher productivity for non-displaced workers would likely result in an output boom that would substantially increase global economic growth, according to a note written and published on Sunday by economists at Goldman Sachs led by Jan Hatzius.
Artificial Intelligence Could Increase Global Production
The team estimated that generative AI could increase US labor productivity by approximately 1.5 percentage points per year over the course of a decade. This would be a significant increase in productivity, which grew by only 1.3% on average from 2002 to 2022, undermining wage growth.
In the decade following the implementation of artificial intelligence by at least half of the world’s businesses, Goldman Sachs economists predict that the annual growth rate of the world’s gross domestic product could reach 7 percent.
That is nearly equivalent to $7 trillion, all things considered. They anticipate that AI will result in a global productivity increase of 1.4 percentage points per year.
The economists also wrote, If generative AI delivers on its promised capabilities, the labor market could face significant disruption.
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Workers To Be Replaced By New Technology
Goldman predicted that artificial intelligence would affect seven out of ten US workers, but that only a small portion of these workers would be replaced by new technologies. One of the sectors that are most vulnerable to automation is the legal and office and administrative support sector.
Nearly two-thirds of American workers could have their jobs enhanced by artificial intelligence. He used the fields of education, community and social service, computer science, and mathematics as examples, according to Goldman.
Economic experts have stated that the immediate effects of generative AI on labor demand could be negative. Although this was the case, they claimed that the effects on labor productivity growth would remain positive.
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