AI Displacement Hits Call Centers and Entry-Level Workers Hard

Goldman Sachs has published research that suggests industries with high exposure to artificial intelligence (AI) are experiencing slower job openings growth. The report, titled 'Global Economics Comment: Is AI Impacting Global Labor Markets?', found that companies in these sectors have reevaluated their hiring plans due to the onset of generative AI tools.

The researchers analyzed data from various countries and found that employment in industries such as call centers, software publishing, advertising services, and management consulting has fallen sharply below trend. In particular, call center employment was down 39% below trend in the US, 33% in Canada, and 27% in Germany.

The study also suggests that AI displacement is stronger among entry-level employees, with recent research by PYMNTS Intelligence showing that lower-income workers are getting less training, exhibiting less confidence, and finding fewer financial buffers to absorb disruption. The report concluded that AI-related hiring headwinds are visible in official and unofficial employment data but impacts are limited to a narrow set of industries and workers.