AI effect: 800M people could lose their jobs by 2030
What's the story
The rise of artificial intelligence (AI) is set to transform the global workforce, with top CEOs warning of potential job losses. A McKinsey report predicts that AI could eliminate between 400 million and 800 million jobs worldwide by 2030. The impact is already being felt in the tech industry, where more than 94,000 jobs were lost globally between January and June this year due to automation.
Corporate responses
Tech CEOs share their thoughts on AI and job losses
In light of the potential job losses, tech giants are strategizing their approach toward AI. Microsoft CEO Satya Nadella said his company's focus is on leading the AI wave and helping customers succeed with it. He stressed that empowering users to adopt AI is central to Microsoft's long-term business vision. Meanwhile, NVIDIA's CEO Jensen Huang emphasized that jobs won't be lost directly to AI but rather by those who learn how to use it effectively.
Industry impact
Banking sector predicts job cuts due to AI
The banking sector is also bracing for the impact of AI on employment. Former DBS Bank CEO Piyush Gupta predicted that around 4,000 jobs might be lost at the bank over the next three to four years due to automation-driven efficiency. Meanwhile, JPMorgan Chase's chief Marianne Lake told investors that AI will help cut its staff by 10% in operations and account services.
Insights
Amazon and Anthropic's outlook on AI and employment
Amazon CEO Andy Jassy acknowledged the potential of AI to reduce the company's corporate workforce in the coming years. He said efficiency gains from AI could make some roles redundant, although new job categories may also emerge. Meanwhile, Anthropic's CEO Dario Amodei warned that AI could eliminate half of all entry-level white-collar jobs, and unemployment rates could surge to 10-20% within five years.
Widespread impact
No profession is safe from automation, warns Amodei
Amodei further told CNN that AI is improving very quickly and could affect tasks done by everyone, including CEOs. He stressed that no job, including leadership roles, is fully safe from the advance of automation. InMobi CEO Naveen Tewari has also urged workers to upgrade their skills as this is a survival issue in the face of impending job losses due to AI.