The newly released Goldman Sachs report poses some challenging ideas of what’s to come next . . like job losses for lawyers and others
Goldman Sachs has released a report on the potential impact of generative AI, stating that if the technology lives up to its hype, it could upend the workforce in the US, Europe, and beyond.
The bank estimates that 300 million jobs could be lost or diminished due to AI, though it also predicts that automation will create innovation and new types of jobs.
Lawyers are at the forefront of the effect AI will have on the legal profession, with many already deploying AI apps.
“AI can absorb information very quickly and spit it out,” Emad Mostaque, the founder of Stability AI, told Goldman Sachs.
“It’s a bit like a really talented intern with a bad memory,” he said, and when the memory issue gets fixed, AI may be ready for a promotion to analyst or associate level work.
Goldman Sachs predicts that the growth of AI will mirror the trajectory of past computer and tech products, with AI reshaping the world at a fast pace.
The technology has shown significant growth in a very short timeframe, with OpenAI software ChatGPT and DALL-E quickly surpassing one million users and investments in AI totaling nearly $94 billion from 2021 to now, according to Stanford’s AI Index Report.
While significant labor cost savings, new job creation, and a productivity boost for non-displaced workers could lead to a labor productivity boom.
But the major downside is that AI could also lead to wealth and income inequality, as if that is not happening already, with non-college-educated workers facing a significant decline in real earnings.
Reports estimate that AI could eliminate 200,000 jobs in the banking industry within the next 10 years and the legal profession faces some major challenges also.
Sectors impacted by automation include office administrative support, legal, architecture and engineering, business and financial operations, management, sales, healthcare, and art and design.
While AI could add 1 percent to the US GDP by 2030 if it continues its growth trajectory, it will also come at a significant human cost.
According to PriceWaterhouseCoopers it has the potential to bring economic benefits of up to $15 trillion to global GDP by 2030.
But are lawyers worried? According to a recent survey by LexisNexis and reported in the ABA Journal, only 10 percent of US lawyers believe that AI tools like Chat GPT will have a ‘transformative impact’ upon the legal profession.
But there again, many have not yet seen the transformative effect artificial intelligence is already having on many professions as it continues to create mind-bending transformative tricks.
