AI Adoption Reaches 15-20% as Entry-Level Workers Face Growing Job Market Pressures

Goldman studied where AI is squeezing labor markets. Here's what it found

* Employment in call centers, software publishing, management consulting and advertising services has fallen sharply below trend across developed markets. * Entry-level workers appear particularly exposed to the impact of AI adoption on employment. * AI adoption is already widespread across developed economies, averaging roughly 15% to 20%. Goldman Sachs signage on the floor of the New York Stock Exchange (NYSE) in New York, US, on Tuesday, July 14, 2026. Michael Nagle | Bloomberg | Getty Images Artificial intelligence is starting to weigh on labor market across major developed economies, with effects varying across industries and seniority levels, according to Goldman Sachs. The Wall Street investment bank found in its research that industries with greater exposure to AI automation have generally seen slower job openings growth since the second half of 2022, with the relationship particularly pronounced in Germany, Australia and the U.S. Goldman said in its report published Wednesday that employment in information and communication services, among the industries most exposed to AI, has slowed across nearly all major developed economies since 2022. However, employment in these industries remains near or above its long-run trend outside the U.S. Looking more closely at highly AI-exposed industries, Goldman found a similar, though generally more muted, pattern of employment headwinds across other developed markets. Employment in call centers, software publishing, management consulting and advertising has fallen sharply below its historical trend across developed markets, Goldman said. Call centers stand out in particular. Employment in the industry is now below trend in the U.S., 39% lower, Canada, down 33%, and Germany 27% below trend, according to the report. Goldman said the pattern indicates that AI-related employment pressures are already visible in industries where tools capable of automating work are available. Entry-level workers feel more pressure The effects appear to be more pronounced for those looking to start their careers. Goldman analyzed employment growth across more than 800 occupations and found that AI-related headwinds were the strongest among entry-level workers. It also found an additional, though smaller, negative effect among occupations considered to have a high risk of displacement from AI. Across the broader labor market, a 10% occupational exposure to AI was associated with only a 0.1 percentage point drag on annual headcount growth in France, Canada and the U.S. But for entry-level workers, the impact ranged between more than 0.6 percentage point (Australia) and over 0.2 percentage point (U.S.). Overall, the investment bank concluded that AI-related hiring pressures are clearly visible in employment data globally, but remain limited to a relatively narrow set of industries and workers. Where AI adoption is highest The labor market impact comes as AI adoption is spreading across developed economies. Goldman combined 11 surveys measuring AI adoption across countries and found that major developed markets have adoption rates of roughly 15% to 20%. France, the U.S., the Netherlands and the U.K. are leading AI adoption, while Italy, Japan and New Zealand were among the developed economies at the lower end of adoption. Major emerging markets, meanwhile, had estimated adoption rates of between 10% and 15%. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Goldman Sachs Sounds New AI Jobs Alarm -- Entry-Level Workers Are Already Feeling the Pressure as AI Adopt

Artificial intelligence is starting to put pressure on some parts of the labor market, with entry-level workers appearing particularly exposed, according to new research from Goldman Sachs. Goldman Sachs Group (NYSE:GS) released the research Wednesday, finding that industries with greater exposure to AI have generally seen weaker job openings growth since 2022. Employment in call centers, software publishing, management consulting and advertising services has also fallen below historical trends, while AI adoption across major developed economies has reached roughly 15% to 20%, reported CNBC. AI Pressure Is Showing Up in Some Industries The effects are not spread evenly across the labor market. Goldman found that information and communication services, one of the industries most exposed to AI, have experienced slower employment growth across several developed economies since 2022. Call centers showed some of the clearest weakness. According to the research, employment in the industry is 39% below trend in the U.S., 33% below trend in Canada and 27% below trend in Germany. Goldman said the pattern indicates that AI-related employment pressures are already visible in industries where tools capable of automating work are available. Entry-Level Workers Face a Bigger Challenge Goldman analyzed employment growth across more than 800 occupations and found that AI-related headwinds were strongest among entry-level workers. The finding lines up with recent research from Harvard Business School and INSEAD. A study of AI-native startups found that these companies were about 25% smaller than comparable startups, employed roughly 15% fewer entry-level workers and managers, and had a share of senior workers about 20% higher. The researchers said AI-native companies were using the technology both to make employees more productive and to build AI directly into their products. That allows some companies to operate with smaller teams while maintaining similar valuations to traditional startups. The trend could make it harder for younger workers to enter some fields if companies increasingly use AI to handle tasks traditionally assigned to junior employees. Tech Netflix Co-Founder Reed Hastings Says Companies Aren't Families: 'You Would Never Lay Off Two of Your Kids' Reed Hastings explains why companies should operate like teams, not families, after Netflix's 2001 mass layoff. 4 min read Read this article AI Has Not Triggered a Broad Job Collapse The Goldman findings do not necessarily mean the economy is heading toward widespread AI-driven unemployment. Latest Private Market Opportunities Join 400,000+ Investors A recent Bank of America analysis found little evidence that AI has so far caused a broad employment collapse across the U.S. economy. Industries with the highest AI exposure have seen employment largely move sideways since ChatGPT launched, while less-exposed industries grew about 2%. Bank of America economist Stephen Juneau said, "AI replaces tasks not occupations," suggesting that workers may use AI to complete parts of their jobs faster without eliminating the entire position. At the same time, some white-collar and entry-level roles are showing signs of pressure, while construction, manufacturing and other industries tied to AI infrastructure are creating new demand for workers. Companies Are Still Hiring Alongside AI Recent hiring trends also show that companies are not uniformly replacing workers with AI. The shift is also reaching junior roles. Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) expects to continue hiring in AI and cloud computing, while CSX Corp. (NASDAQ:CSX) expects its train and engine workforce to increase modestly. Booz Allen Hamilton Holding Corp. (NYSE:BAH) also plans to accelerate hiring after cutting thousands of jobs last year. The developments suggest companies may be using AI to change how workers perform their jobs rather than simply removing positions. That could create a labor market where fewer junior employees are needed for certain tasks while demand rises for workers with specialized skills. Why AI's Cost Still Matters Economist Steve Hanke has offered a more skeptical view of AI-driven job displacement. In an August interview, Hanke argued that replacing workers with AI on a massive scale remains difficult because the technology requires significant amounts of electricity, water, computing power and physical infrastructure. "Businesses will not be firing everybody and replacing them with AI," he said. Hanke's argument provides a counterpoint to the latest Goldman findings. While Goldman sees measurable labor-market pressure in certain industries and among entry-level workers, Hanke argues that the cost of deploying AI at scale could limit how quickly businesses replace human workers. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Tech Chamath Palihapitiya Says Mark Zuckerberg Knows 'Great Engineers' Want to Join 'Space/Search/AI' Companies, Not Meta's Advertising Machine Chamath Palihapitiya believes Mark Zuckerberg doesn't talk about Meta's ad identity because top engineers prefer to work for tech leaders. 3 min read Read this article Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Goldman Finds Entry-Level Workers More Vulnerable to AI Displacement | PYMNTS.com

The impact of AI varies according to industry and levels of seniority, the banking giant said in the report "Global Economics Comment: Is AI Impacting Global Labor Markets?", published Wednesday (Aug. 19). "We find that industries with greater exposure to AI automation are associated with slower job openings growth since the second half of 2022, with a more negative relationship in Germany, Australia, and the U.S.," the report said. "This cross-industry result confirms our prior finding that the onset of generative AI tools may have led companies in highly exposed industries to reevaluate their hiring plans." Goldman's researchers said they've seen evidence that employment in the "highly exposed" information and communication service industries has lagged due to AI. While this trend is global, the impacts are "most compelling" in the U.S. The research shows employment in call centers, software publishing, advertising services and management consulting all falling "sharply below trend," particularly in terms of call centers: down 39% below trend in the U.S., 33% in Canada and 27% in Germany. "These patterns confirm that, like in the U.S., AI-employment headwinds are visible in industries where labor-automating tools are already available," the report said. In addition, the researchers noted that recent anecdotes and U.S. labor market data indicate that AI displacement could be stronger among entry-level employees. Goldman said its findings show AI-related headwinds were felt more strongly by workers just starting out. "Overall, our analysis confirms that the conclusions from the U.S. hold globally. AI-related hiring headwinds are clearly visible in official and unofficial employment data, but impacts are limited to a narrow set of industries and workers," the report concluded. Meanwhile, recent research by PYMNTS Intelligence shows the impact of AI on "Labor Economy" workers, or those who make up to $25 an hour and typically under $50,000 per year. "The Resilience Deficit: Labor Workers in an Automated Economy" found that AI is spreading across all types of workplaces, with 37% of these employees saying their company had introduced new AI or automation tools in the last 12 months. However, the research also shows that lower-income employees are getting less training, exhibiting less confidence and finding fewer financial buffers to absorb disruption. "The findings also suggested that AI's impact is moving beyond Silicon Valley and corporate offices into warehouses, restaurants, hospitality, logistics and caregiving jobs that make up a large share of everyday consumer spending," PYMNTS wrote earlier this year.