Goldman Sachs warns AI could automate 25% of work hours as white-collar jobs face disruption

AI Shockwave: Goldman Sachs Warns 25% Work Hours Face Automation

Sachs did not predict mass job losses overnight; the estimate refers to work hours, not entire roles. Most such professions consist of multiple tasks. AI is anticipated to replace humans in performing tedious, repetitive, and data-intensive tasks; humans will move to work that is more valuable. In reality, a lot of sectors will be transformed before they are eradicated. Office-based and knowledge-heavy roles sit at the center of the impact. Administrative work, customer support, legal research, finance operations, and parts of engineering and design show high automation potential. Generative AI is already capable of composing papers, conducting , programming, and contract management on a large scale. However, job roles that demand physical presence, manual skills, or human decision-making, like construction, medical treatments, and vocational trades, are still fairly resistant to automation.

Will AI take over jobs? Goldman Sachs predicts automation of 25 pct of work hours

Short-term disruption is likely, with unemployment potentially rising by 0.6 percentage points, making reskilling and policy response crucial to long-term outcomes. Ever since AI has become popular all over the world, there's an ongoing debate about whether it will affect jobs or not. Many experts have already made their statements on the topic hinting that it might affect some jobs but create some. A new report from Goldman Sachs has warned that AI may reshape the global workforce in the coming years, with automation expected to take over a big portion of existing job tasks. The investment bank estimated that AI technology could eventually handle nearly a quarter of total work hours, raising some concerns about job displacement but falling short of predicting a widespread employment crisis. Also read: Microsoft scrambles to fix Windows 11 after security update causes unexpected failures The analysis uses labour data from the US Department of Labour to assess how quickly advancing AI systems may change the structure of employment. According to the report, while automation will accelerate, the impact will vary by sector and occupation. According to the report, white-collar jobs, particularly those requiring repetitive cognitive work, are likely to bear the brunt of the effects. Clerical duties, data processing, entry-level coding, accounting, and legal research are expected to be among the most exposed roles as AI tools improve in capability and adoption. Also read: Amazon Great Republic Day sale 2026: Google Pixel 10 Pro price drops by over Rs 9,000, check details Even with these predictions, Goldman Sachs does not expect AI to eliminate jobs. According to the research project, AI has the potential to increase labour productivity by approximately 15% over time. Based on historical trends linking productivity gains to workforce changes, the report predicts that approximately 6 to 7 percent of jobs may be lost during the adoption phase. In the short period of time, however, this transition may impact the culture leading to a temporary rise in unemployment. The report added that the job displacement could push the unemployment rate up by about 0.6 percentage points at its peak, equivalent to roughly one million additional unemployed workers before new opportunities begin to materialise. Also read: Samsung Galaxy S26 Ultra design, colour options and specifications leaked ahead of launch next month: What we know Coming to the conclusion, the report stated that the long term impact of AI on employment will definitely depend on how quickly the employees, companies and policymakers respond. It also mentioned that the investment in reskilling, education and development of new AI enabled roles will be a critical factor in finding out if automation leads to impact on the jobs.