AI boosts productivity but also leads to job cuts: Report
A new Morgan Stanley report shows that while AI is making companies more productive, it's also leading to job cuts.
The study, which surveyed 935 execs from the US, Germany, Japan, and Australia, found that healthcare has seen the highest AI-driven productivity gains, while real estate showed the lowest gains—but not everyone's job is safe.
Auto industry saw most layoffs; transportation was hit least
On average, companies using AI saw an 11.5% jump in productivity but a 4% drop in global headcount.
The auto industry had the most layoffs; transportation was hit the least.
Interestingly, the US actually gained 2% more jobs thanks to AI—Morgan Stanley also notes emerging roles like chief AI officer and predictive maintenance engineer.
If all S&P 500 companies adopt AI, potential gains are huge
Firms adopting AI didn't just get faster—they got richer too. Their profit-margin expectations are accelerating.
The report suggests substantial potential gains if all S&P 500 companies fully embrace AI.