AI Adoption Higher in Developed Nations, Job Openings Slowing Down

Developed economies lead in AI adoption (15-20%), while emerging markets lag (10-15%). This trend has caused a slowdown in job openings in highly exposed sectors like tech and call centres, particularly in the US, Germany, and Australia.

AI adoption rates among major developed economies range from 15–20 per cent, with France, the US, the Netherlands, and the UK at the top end of the range, according to a report by Goldman Sachs Research.

The report indicated that major developed economies deployed artificial intelligence faster than other nations, while major emerging markets recorded adoption rates between 10 per cent and 15 per cent.

Automation Exposure and Hiring Slowdown

The research found that industries with greater exposure to automation witnessed a slowdown in job openings starting from the second half of 2022, with the trend appearing most pronounced in Germany, Australia, and the US.

"This cross-industry result confirms our prior finding that the onset of generative AI tools may have led companies in highly exposed industries to re-evaluate their hiring plans," the report said.

Sector-Specific Employment Contractions

Employment growth slowed notably across information and communication services, call centres, software publishing, and advertising.

In the US, headcount across information and communication services dropped below its long-run trend, while remaining near or above historical trends across other developed economies.

"These patterns suggest tech sector (broadly defined) hiring headwinds are global in nature," the report added. "Although outright negative impacts are most compelling in the US."

The contraction appeared marked across specialized subsectors across several developed markets. Call centre employment declined 39 per cent below trend in the US, 33 per cent below trend in Canada, and 27 per cent below trend in Germany.

"These patterns confirm that, like in the US, AI-employment headwinds are visible in industries where labor-automating tools are already available," the report observed.

Limited Economy-Wide Impact

Despite sector-specific contractions, broader macroeconomic effects remained subdued.

The report evaluated occupational exposure across more than 800 occupations and showed that a 10 per cent occupational exposure generated a drag of only 0.1 percentage point on annual headcount growth across the US, France, and Canada.

The report stated that "economy-wide hiring headwinds remain limited" across the broader labor landscape.

However, the findings highlighted specific vulnerabilities for entry-level positions, noting that junior workers faced heavier obstacles as firms integrated automated solutions.

"AI-related hiring headwinds are clearly visible in official and unofficial employment data," the report added. "But impacts are limited to a narrow set of industries and workers." (ANI)

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