Corporate America says AI isn't about cost-cutting, but jobs will go anyway, a Goldman Sachs banker survey finds

"The survey found that companies are primarily turning to AI to boost productivity and revenue - not to slash costs - with nearly half of banking clients using the technology to drive growth. This compares with just one in five deploying it primarily to cut expenses. Meanwhile, only about one in 10 firms has reduced head count so far due to AI, though nearly a third of bankers covering technology, media, and telecom clients report early signs of job pressure."

"Still, the bankers expect AI to start trimming payrolls soon. They forecast a 4% reduction in head count over the next year, followed by a deeper 11% cut within three years. "The relatively fast increase in expected adoption and head count reductions over the next three years highlights that AI impacts on the US labor market could arrive sooner than expected," wrote Goldman's analysts, led by chief economist Jan Hatzius, in a Thursday note."

A survey of 105 Goldman bankers found companies are primarily deploying AI to boost productivity and revenue rather than to cut costs. Nearly half of banking clients use AI to drive growth, while about one in five use it mainly to reduce expenses. Only around one in 10 firms has so far reduced head count because of AI, though technology, media, and telecom clients show early job pressure. Bankers predict a 4% reduction in head count over the next year and an 11% cut within three years. Customer support roles face the highest risk of automation-driven reductions.

Read at Business Insider