The AI Revolution: Who’s Up Next for Automation?
Artificial intelligence (AI) has been increasingly infiltrating almost every industry, transforming our daily life and work routines. MSCI, in collaboration with Goldman Sachs Global Investment Research, released a report in March 2023, assessing the potential percentage of employment in U.S. industries that could be automated by AI1.
Deep Dive into Data
To carry out this analysis, researchers had to go through over 900 U.S. jobs available in the O*NET occupational database. They estimated the exposure to automation and weighted it by each occupation’s share of employment. This data was then aggregated at the industry level. The “office and administrative support” industry tops the list, with an estimated 46% of roles potentially being automated by AI. This could significantly impact common tasks like data entry, scheduling meetings, and managing documents. Close behind is the “legal” sector at 44%, where AI could automate processes like contract analysis and even predict court case outcomes. However, industries heavily reliant on manual labor, like “construction and extraction”, are less likely to be significantly impacted by AI automation1.
The AI Future: Not So Far Off
AI is still a developing technology, and its impact on labor productivity will depend on its evolution and rate of adoption. Different countries have shown varying levels of optimism towards AI, affecting their adoption rates. Goldman Sachs suggests that in the most aggressive scenario, AI automation could impact up to 300 million jobs worldwide and potentially result in a 7% increase in annual GDP (equal to about $7 trillion). Given AI’s massive potential for disruption, it’s crucial for investors to stay ahead. In response, MSCI has created the MSCI ACWI IMI Robotics & AI Index, which benchmarks an investable universe of companies associated with the adoption of AI, robotics, and automation.
