AI may impact 90% of jobs: Morgan Stanley
What's the story
A recent report by Morgan Stanley has highlighted the transformative potential of artificial intelligence (AI) in the global business landscape. The study predicts that AI adoption could impact as many as 90% of jobs while also unlocking trillions of dollars in economic value. The report estimates that full-scale AI adoption across S&P 500 companies could yield an annual net benefit of around $920 billion.
Market impact
Effect on market capitalization
The Morgan Stanley report estimates that agentic AI, software that can plan, make decisions, and carry out tasks with little human involvement, could contribute around $490 billion to this annual net benefit. Meanwhile, embodied AI, such as humanoid robots, could account for the remaining $430 billion. In the long run, this productivity boom could translate into a staggering increase of between $13 trillion and $16 trillion in market capitalization for the S&P 500 index.
Job evolution
Role in job creation and re-skilling
The report also paints a more optimistic picture of AI's role in the labor market, suggesting that it could be a force for good, creating new jobs and driving demand for re-skilling. Heather Berger, US Economist at Morgan Stanley, said, "While some roles may be automated, others will see enhancement through AI augmentation."She added that "AI is likely to create entirely new roles."
Sectoral influence
Sectors poised for AI-driven transformation
Morgan Stanley has identified three key sectors with the highest potential for AI-driven value: consumer staples distribution and retail, real estate management and development, and transportation. The report highlights how AI adoption could revolutionize operations in these industries, from supply-chain optimization and personalized pricing in retail to humanoid assistance in real estate and autonomous delivery systems in logistics.