08-02-2024
How AI Could Impact Jobs in Banking and Tech
A new wave of artificial intelligence (AI) is challenging our traditional views on technology, particularly in the white-collar job landscape of banking and tech industries. The Burning Glass Institute and SHRM released a report, suggesting that the rise of generative AI, as seen in chatbots like OpenAI’s ChatGPT, may reshape how jobs are done, especially for those in higher-paying roles.
While the report doesn't predict massive job losses, it signals a need for workers to prepare for a future where AI plays a more prominent role in industries that have, until now, been less affected by technological changes. Interestingly, the impact might be felt most by workers with college degrees, challenging the assumption that their jobs are secure.
For tech professionals, this could mean building AI systems that might eventually replace certain job functions. Matt Sigelman, President of the Burning Glass Institute, notes that individuals with college degrees, including business analysts, marketing managers, software developers, database administrators, project managers, and lawyers, are among those most likely affected.
Finance companies like Goldman Sachs, JPMorgan Chase, and Morgan Stanley, as well as tech giants such as Google, Microsoft, and Meta, are expected to see a significant impact. The research estimates that these companies spend a substantial portion of their payroll on roles that could be influenced by generative AI, potentially leading to considerable cost savings.
Contrastingly, industries like retail, restaurants, and transportation are considered less likely to be affected. Companies such as Walmart, McDonald’s, and Delta Air Lines, which employ a large workforce without college degrees, are estimated to spend less than 20% of their payrolls on roles susceptible to generative AI.
The report doesn't make concrete predictions about job losses due to generative AI, leaving it up to employers to decide how they want to manage the impact. The prevailing expectation is that AI will transform jobs rather than eliminate them in the near term, though this could change if AI technology advances significantly. As industries navigate this shift, the balance between banking the savings from AI automation and reinvesting in growth and employment will be a critical consideration for businesses.
