AI and job losses: How worried should we be?

Since the November 2022 launch of OpenAI’s ChatGPT (Generative Pre-trained Transformers), the issue of AI technologies-related job displacement is receiving renewed economic impact scrutiny. 

For example, in March 2023, technology firm OpenAI released a report that found at least 80% of the U.S. labor force could have at least 10% of their work-related tasks affected by the introduction of GPT, while another 19% of employees may see at least 50% of these work-related tasks impacted. While GPT influence impacts all wage levels, the higher-income jobs potentially face the greatest exposure, concludes OpenAI. 

Also in March 2023, researchers at investment banker Goldman Sachs, after collecting data on occupationally-oriented tasks in Europe and the U.S., found that roughly two-thirds of current occupations are exposed to varying degrees of generative AI automation (such as found in ChatGPT), and that AI could substitute for nearly one-fourth of current work performed.

In July 2023, the McKinsey Global Institute issued a report estimating that without generative AI, automation could take over tasks accounting for 21.5% of the hours worked in the U,S. economy by 2030; but with generative AI, that share increased to 29.5%.