The impact of AI on the job market is already significant, affecting a quarter of all jobs and contributing $2.1 trillion to the economy. Morgan Stanley predicts that in the next few years, AI will have a staggering impact of $4.1 trillion, affecting...
Troy D. Hanson
October 02, 2023
According to Morgan Stanley, the impact of AI on the job market is already significant, affecting a quarter of all jobs and contributing $2.1 trillion to the economy. However, this is just the beginning. The firm predicts that in the next few years, AI will have a staggering impact of $4.1 trillion, affecting 44% of the labor force.
Morgan Stanley's research highlights the rise of generative AI, which will automate tasks, transform the way companies handle data, and revolutionize input processes. Brian Nowak, an analyst at Morgan Stanley, explains that generative AI is expanding the range of business operations that can be automated. Additionally, the costs associated with implementing generative AI are rapidly decreasing, making it increasingly accessible for software production. This will undoubtedly have a significant impact on labor markets and create new opportunities for enterprise software and public cloud services.
The positive outlook for AI extends to related stocks such as Nvidia Corp., Symbotic Inc., and C3.ai Inc., which have experienced substantial growth. Furthermore, Morgan Stanley expects software companies that adopt AI to see a considerable revenue boost. It estimates that these companies could capture up to 5% of the $4.1 trillion labor impact, resulting in a total addressable market of $205 billion.
The adoption of AI is not limited to software companies alone. Enterprise companies are also set to benefit from this technological advancement. Morgan Stanley anticipates that AI adoption among these companies could reach 20% within the next three years. This presents a $150 billion spending opportunity.
In conclusion, while concerns about AI among American workers are justified, it is impossible to ignore the immense potential that AI holds for various industries. The transformative power of AI will undoubtedly reshape the job market and present new opportunities for growth and innovation.