{"id":352541,"date":"2025-11-03T12:04:16","date_gmt":"2025-11-03T12:04:16","guid":{"rendered":"https:\/\/www.europesays.com\/us\/352541\/"},"modified":"2025-11-03T12:04:16","modified_gmt":"2025-11-03T12:04:16","slug":"why-the-goldman-sachs-ceo-isnt-buying-the-ai-jobs-freakout","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/352541\/","title":{"rendered":"Why the Goldman Sachs CEO isn\u2019t buying the AI jobs freakout"},"content":{"rendered":"

\n The fingerprints of artificial intelligence are all over mass layoffs and downsizing at Meta, Amazon, Salesforce, YouTube and other major companies, raising fears of an AI-fueled jobs wipeout<\/a> for white-collar workers<\/a>.\n <\/p>\n

\n AI may hurt demand for office workers, but there\u2019s reason for hope, Goldman Sachs CEO David Solomon believes. The dynamic American workforce will evolve, as it has in the past, Solomon told CNN during a sit-down interview.\n <\/p>\n

\n Solomon, speaking from the sidelines of the Goldman Sachs 10,000 Small Businesses Summit in Washington, cited the disruption caused by the invention in the late 1700s of the steam engine, which helped fuel the first industrial revolution.\n <\/p>\n

\n \u201cThere will be disruption. But I\u2019m a big believer that our economy is very nimble, very flexible. And when you look at the technology that has flooded over hundreds of years into our society, we adapt,\u201d Solomon said. \u201cWe find new businesses. We find new jobs. I don\u2019t believe it will be different this time.\u201d\n <\/p>\n

\n Of course, that adjustment process can be difficult \u2013 especially for the workers whose careers have been sidelined by new technology.\n <\/p>\n

\n A key difference this time is the explosive speed at which AI is being embraced by businesses \u2013 and how rapidly AI itself is advancing. A Goldman Sachs survey of bankers found that 37% of clients are using AI for regular production, with adoption expected to hit 50% next year and 74% in the next three years.\n <\/p>\n

\n ChatGPT launched in November 2022 and now boasts 800 million weekly active users<\/a>. Its parent company OpenAI is reportedly laying the groundwork for an IPO that could value it at up to $1 trillion<\/a>.\n <\/p>\n

\n Today\u2019s AI chatbots can do deep research, generate stunningly realistic films<\/a>, compose music and instantly flag financial fraud<\/a> before it can even get completed.\n <\/p>\n

\n That speed could make the transition bumpier this time around.\n <\/p>\n

\n \u201cThe pace of adoption of this technology is going a little bit faster. As businesses wrestle with deploying the technology and the automation, the short-term disruption might be a little bit higher,\u201d the Goldman Sachs CEO said. \u201cBut our economy is incredibly broad and nimble.\u201d\n <\/p>\n

\n Office workers may be especially exposed to that disruption.\n <\/p>\n

\n Although Amazon CEO Andy Jassy told analysts the company\u2019s recent 14,000 layoffs<\/a> were \u201cnot even really AI driven,\u201d he said in June that <\/strong>adopting generative AI and AI agents will shrink the company\u2019s corporate workforce<\/a>.\n <\/p>\n

\n Meta recently cut 600 roles within its AI team, which reports <\/a>have indicated<\/a> is part of an effort to move more nimbly. YouTube this week began offering voluntary buyouts to US employees as part of an AI-focused restructuring.\n <\/p>\n

\n Workers at Chegg, an online education company, are being hurt by AI on two fronts. First, the rise of ChatGPT is lowering demand for Chegg\u2019s education services. Secondly, Chegg itself is investing in AI, promising to run its business leaner with fewer workers to compete. This week Chegg said it will slash nearly half its workforce<\/a> as it grapples with the \u201cnew realities of AI\u201d and lower search traffic.\n <\/p>\n

\n AI was cited as a reason for 17,375 layoff announcements this year tracked by outplacement and coaching firm Challenger, Gray & Christmas through the end of September. That represents less than 2% of the total layoffs announced this year.\n <\/p>\n

\n However, Challenger noted that this tally likely undershoots AI-linked layoffs. Another 20,219 job cuts announced during that period were tied to companies citing unspecified technological updates \u2013 some of which could be related to AI.\n <\/p>\n

\n \u201cThe need for some white-collar office jobs will be diminished, but they\u2019ll be picked up in other parts of the economy,\u201d said Solomon.\n <\/p>\n

\n By contrast, Anthropic CEO Dario Amodei has warned that AI could eliminate half of entry-level jobs in white-collar professions, lifting the unemployment rate to up to 20% in the near future.\n <\/p>\n

\n \u201cIt\u2019s eerie the extent to which the broader public and politicians, legislators, I don\u2019t think, are fully aware of what\u2019s going on,\u201d Amodei told CNN\u2019s Anderson Cooper<\/a> in May. \u201cWe have to act now. We can\u2019t just sleepwalk into it.\u201d\n <\/p>\n

\n Federal Reserve Chairman Jerome Powell acknowledged during a press conference that a \u201csignificant number of companies\u201d are either doing layoffs or saying they won\u2019t hire much in part because of AI.\n <\/p>\n

\n \u201cWe\u2019re watching that very carefully\u2026It could absolutely have implications for job creation,\u201d Powell said.\n <\/p>\n

\n A survey of over 100 Goldman Sachs investment bankers finds that just 11% of US companies are \u201cactively reducing headcount due to AI,\u201d a report published last week said. However, that figure rises to 31% for tech, media and telecom companies.\n <\/p>\n

\n Goldman Sachs bankers expect AI will lead to \u201cmodest headcount reductions\u201d of 4% over the next year. But that number could rise to 11% over the next three years \u2013 especially in customer service jobs.\n <\/p>\n

\n Jan Hatzius, Goldman\u2019s chief economist, wrote that the findings support the bank\u2019s view that AI will have a \u201ctransformative impact on the labor market and economy,<\/strong>\u201d and that rapid adoption signals that \u201cAI impacts on the US labor market could arrive sooner than expected.\u201d\n <\/p>\n

\n The AI boom has also raised worries about a bubble forming in this red-hot part of the market.\n <\/p>\n

\n Solomon said that while many \u201cgreat companies\u201d will be formed during the AI boom, at some point the exuberance could get overdone and it won\u2019t be a \u201cstraight line up\u201d in value.\n <\/p>\n

\n One scenario he laid out is that demand for AI services may at some point fail to reach lofty expectations, driving valuations down.\n <\/p>\n

\n But that process could take time to play out because, as Solomon noted, most public tech companies are well-established and the newer AI companies are largely still in private markets, where valuation markdowns only change slowly.\n <\/p>\n

\n \u201cThe technology is exciting \u2013 there should be a lot of enthusiasm for it,\u201d Solomon said. \u201cBut there will be bumps along the way, too.\u201d\n <\/p>\n

\n \u2013 CNN\u2019s Alicia Wallace contributed to this report.\n <\/p>\n","protected":false},"excerpt":{"rendered":"The fingerprints of artificial intelligence are all over mass layoffs and downsizing at Meta, Amazon, Salesforce, YouTube and…\n","protected":false},"author":3,"featured_media":352542,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[691,738,158,67,132,68],"class_list":{"0":"post-352541","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-technology","11":"tag-united-states","12":"tag-unitedstates","13":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115485675586291777","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/352541","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=352541"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/352541\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/352542"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=352541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=352541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=352541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}