Goldman Sachs Warns AI Is Already Displacing Entry-Level Workers

Goldman Sachs has sounded an alarm about the impact of artificial intelligence on the labor market. Research from the investment bank found that industries exposed to AI have seen weaker job openings growth since 2022. In particular, employment in call centers, software publishing, management consulting, and advertising services has fallen below historical trends.

The study also found that entry-level workers are feeling the pressure as companies increasingly use AI to automate tasks. This trend is evident across various developed economies, with information and communication services experiencing slower employment growth since 2022. In call centers alone, employment is down by 39% in the US, 33% in Canada, and 27% in Germany.

Goldman Sachs' findings align with recent research from Harvard Business School and INSEAD, which showed that AI-native startups have smaller teams and fewer entry-level workers. This shift could make it harder for younger workers to enter certain fields if companies continue to rely on AI to handle tasks traditionally assigned to junior employees.