Much has been said about AI being introduced into white-collar industries, making it increasingly difficult for young graduates to find entry-level jobs.
A Goldman Sachs research report suggests that while AI has so far had little impact on the job prospects of college graduates, this dynamic may change in the short term.
“AI-related job headwinds have so far been modest and limited to a few specific sub-industries exposed to AI, such as software publishing, data processing, and call centers,” said the report, compiled by researchers at Goldman Sachs and based on interviews with experts at the Massachusetts Institute of Technology (MIT).
However, researchers argue that college graduates may feel the impact of AI more quickly than non-graduates. This is because industries such as finance, management, and professional services are adopting AI the fastest, with AI accounting for more than 60% of the workforce.
At the same time, degree holders are concentrated in professional white-collar fields such as law, architecture, and engineering, where around 40% of daily tasks are considered highly automatable.
But in the long term, researchers are more optimistic about employment prospects for young entry-level workers.
“First, increased adoption of AI does not necessarily mean an increased risk of job losses, as AI can not only replace the workforce, but also augment the workforce in many occupations and drive employment growth,” the report said.
Second, the researchers expect that AI will create new jobs that will partially offset those it replaces, just as past technological advances have done.
The report also notes that “young workers, who are most at risk from the erosion of entry-level positions, have historically adapted more quickly to changes in labor demands due to technology.”
Young people entering university are already adapting to AI-driven changes in the labor market. Students are leaving once-popular majors like computer and information science and gravitating toward fast-growing fields like health care.
Ines Ferre is a senior business reporter at Yahoo Finance, covering the U.S. stock market and the economy.
For the latest stock market news and in-depth analysis of price-moving events, click here
Read the latest financial and business news from Yahoo Finance
