Goldman Sachs has warned that artificial intelligence could drive economic growth without creating new jobs. The investment bank said AI is boosting productivity across industries but may not lead to equivalent employment gains.
This trend, often called “jobless growth,” raises concerns for the labor market. While companies can produce more with AI, fewer workers may be needed for the same output. Economists caution that this could affect wages and employment rates in the long term.
AI adoption has accelerated across finance, manufacturing, and technology sectors. Businesses are using AI tools for data analysis, automation, and customer service. These tools increase efficiency and reduce costs but may replace routine jobs traditionally held by humans.
Goldman Sachs analysts noted that productivity gains from AI are significant. Companies report faster decision-making, improved accuracy, and lower operational costs. However, these improvements do not always translate into new hiring.
The report highlights that some sectors may see job displacement faster than others. Routine administrative roles, data entry, and basic customer support are most at risk. Meanwhile, highly skilled roles in AI development, management, and analysis could see increased demand.
The bank emphasized that this shift could widen income inequality. Workers with technical skills may benefit from AI-driven growth, while those in manual or routine jobs could face reduced opportunities. Policymakers may need to consider strategies to retrain workers and support workforce transitions.
AI-driven productivity also impacts wage growth. If companies can produce more with fewer employees, the pressure on wages may increase. Goldman Sachs suggests that long-term economic growth could be strong, but the benefits may not be evenly shared among workers.
Some economists argue that new industries may eventually emerge, creating jobs in areas such as AI oversight, cybersecurity, and tech services. However, Goldman Sachs cautions that these opportunities may not immediately replace the number of roles lost to automation.
The investment bank also highlighted regional disparities. Urban centers with high-tech industries may see job growth, while regions dependent on traditional manufacturing or service jobs could experience slower employment growth. This could further intensify economic inequality between regions.
Policymakers are being urged to consider measures such as upskilling programs, education reforms, and targeted support for affected sectors. These steps could help workers adapt to the changing employment landscape and ensure that AI benefits the broader economy.
Despite concerns, AI adoption continues to accelerate. Companies that embrace AI report higher profits, improved customer experiences, and faster innovation. Goldman Sachs noted that balancing productivity gains with employment considerations will be critical for sustainable economic growth.
The report underscores a key challenge for the 21st-century labor market: achieving economic growth that benefits all segments of society. While AI can drive efficiency and output, ensuring that workers share in the gains remains a pressing issue.
Goldman Sachs concluded that proactive planning is essential. Businesses, governments, and educators must collaborate to prepare the workforce for AI-driven changes. By investing in skills development and inclusive policies, the negative effects of jobless growth can be mitigated.
In summary, AI is transforming productivity and corporate operations, but its impact on jobs requires careful attention. Goldman Sachs warns that without measures to support affected workers, the economy could grow while employment lags.
The report serves as a reminder that technological progress and labor market health must advance together. With the right strategies, AI can drive economic growth while providing opportunities for a broad range of workers.
