AI Adoption Ramps Up Amid Job Market Contraction

A recent report by Goldman Sachs Research found that AI adoption rates among major developed economies range from 15-20 percent, with France, the US, the Netherlands, and the UK at the top end of the range.

The report noted that major emerging markets recorded adoption rates between 10 percent and 15 percent, while industries with greater exposure to automation witnessed a slowdown in job openings starting from the second half of 2022.

According to the research, employment growth slowed notably across information and communication services, call centres, software publishing, and advertising. In the US, headcount across information and communication services dropped below its long-run trend, while remaining near or above historical trends across other developed economies.

The report observed that 'AI-related hiring headwinds are clearly visible in official and unofficial employment data,' but emphasized that impacts are limited to a narrow set of industries and workers.