By Amanda
Published 2023/10/02
The growth of artificial intelligence soon could have some big implications for the labor market, according to Morgan Stanley. Analyst Brian Nowak estimates that the AI technology will have a $4.1 trillion economic effect on the labor force — or affect about 44% of labor — over the next few years by changing input costs, automating tasks and shifting the ways companies obtain, process and analyze information.
Today, Morgan Stanley pegs the AI effect at $2.1 trillion, affecting 25% of labor. “We see generative AI expanding the scope of business processes that can be automated,” he wrote in a Sunday note. “At the same time, the input costs supporting GenAI functionality are rapidly falling, enabling a strongly expansionary impact to software production.
As a result, Generative AI is set to impact the labor markets, expand the enterprise software TAM, and drive incremental spend for Public Cloud services.”