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New US data links AI adoption to rising unemployment beyond tech

The findings identified finance, telecommunications, technical services, and administration as industries that seemed to be affected by increased AI adoption.

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Jobs beyond software development may be feeling the effects of artificial intelligence, a concern that is now emerging from new U.S. labor-market data.

Higher unemployment and rising productivity rose together in several professional industries with greater AI adoption, Futurism reported.

Here's what to know

Two sets of findings examined AI's potential effects on employment, Futurism noted, citing reporting by the Financial Times.

One came from U.S.-based financial researcher Eric Basmajian, who examined productivity trends in information, professional services, and finance — the three industries identified as the heaviest AI adopters. 

His analysis put the share of jobs showing an apparent impact at about 15%.

A document circulating on social media — "what appears to be an internal Goldman Sachs report" — focused on unemployment in relation to industries' exposure to AI. 

The findings identified finance, telecommunications, technical services, and administration as industries that seemed to be affected by increased AI adoption.

More background

Workers increasingly turn to generative AI to write code, and software development has already experienced its employment effects.

Lower headcounts contributed to the higher U.S. productivity measures the Financial Times described. 

Its reporting examined implications for workers as those increases occurred alongside falling employment.

Beyond the workplace, AI's expansion also has potential consequences for communities. Running these systems requires significant electricity and substantial water use for cooling, straining public resources and raising household electricity bills.

AI has potential beneficial applications, like optimizing clean energy systems, but the data centers needed to power it have become a contentious issue nationwide.

What's being done?

Outside the United States, the Financial Times found no equivalent relationship between greater AI adoption, higher productivity, and declining employment. 

That international contrast accompanied reporting that contextualized the American findings within broader post-pandemic economic challenges.

Basmajian described the size of the productivity shift in a social media post cited in the reporting.

"The three heaviest AI adopters (information, professional services, finance) went from a 2.2 percent productivity trend to 5.0 percent since 2022."

Where can I learn more?

Workers' concerns about AI go beyond job security. These stories cover Barclays job cuts, union support, and public opinion on the technology.

• Barclays attributed 5,000 job cuts to AI, with developers among the roles targeted.

• U.S. union approval reached levels last seen in 1965 as AI job fears fueled support.

• Gallup found the U.S. among the few countries where negative views of AI outweigh optimism.

• Amazon faced accusations of using AI to rank warehouses by union risk.

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