- AI adoption in major developed economies ranges between 15% and 20 percent
- Emerging markets show lower AI adoption, around 10% to 15 percent
- Job openings slowed since mid-2022 in sectors vulnerable to automation
AI adoption is reshaping hiring across major economies, with technology-intensive sectors experiencing slower employment growth, according to Goldman Sachs Research. AI adoption across major developed economies has reached around 15% to 20%, with France, the United States, the Netherlands and the United Kingdom at the upper end of the range.
Adoption in major emerging markets remains lower, at roughly 10% to 15%, according to the report. The growing use of generative AI is also prompting companies in highly exposed industries to reassess hiring plans.
ALSO READ: Safety Measure Or Illegal Cartel? Why An AI Truce By Tech Rivals Sparked An Antitrust Firestorm
Goldman Sachs found that job openings in sectors vulnerable to automation began slowing from the second half of 2022, with the trend particularly evident in Germany, Australia and the US.
According to the report, "This cross-industry result confirms our prior finding that the onset of generative AI tools may have led companies in highly exposed industries to re-evaluate their hiring plans,"
The impact has been concentrated in information and communication services, call centres, software publishing, consulting and advertising. US call-centre employment was 39% below its long-run trend, while Canada and Germany were 33% and 27% below trend, respectively. Employment in US information and communication services has also fallen below its historical trend.
Goldman Sachs said technology-sector hiring headwinds appear to be global, although the effects have been most pronounced in the US. In contrast, employment in comparable sectors across several other developed economies has remained closer to or above historical trends.
Despite the sector-specific slowdown, research suggests AI has so far had a relatively limited impact on overall employment. Across the US, France and Canada, a 10% occupational exposure to AI corresponds to about a 0.1-percentage-point reduction in annual headcount growth.
The research also highlights greater vulnerability among junior workers as companies introduce automated solutions. However, Goldman Sachs said AI-related hiring pressures remain concentrated in specific industries and groups rather than affecting the labour market broadly.
ALSO READ: CLARITY Act Setback 'Not Major' As Crypto Stocks Tumble 10%: What's Next For The Industry?
"AI-related hiring headwinds are clearly visible in official and unofficial employment data. But impacts are limited to a narrow set of industries and workers," the report added.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.