$4.1 trillion, and 44% of jobs will be lost because of AI in the next few years.
American workers have good reason to be wary of AI.
The technology already has a $ 2.13 trillion effect on the economy, affecting 24% of jobs. It will have an even more significant impact in the next few years, affecting 44% of employment.
A note from Morgan Stanley released on Sunday says that the rise of generative AI will automate tasks, change how companies collect and analyse data, and ultimately change how people do input tasks.
“We think that generative AI will make it possible to automate more business processes,” wrote Brian Nowak, an analyst at Morgan Stanley. “At the same time, the costs of the inputs that support GenAI functionality are falling quickly, which has a strong growth effect on software production.” Generative AI will affect the job market, grow the total addressable market for business software, and cause more money to be spent on public cloud services.
Morgan Stanley thinks that AI stocks like Nvidia Corp. (NVDA, +2.95%), Symbotic Inc. (SYM, +3.26%), and C3.ai Inc. (AI, -3.21%) will have a great run.
Meanwhile, Morgan Stanley thinks that software companies that use AI will make a lot more money. Software companies could get up to 5% of the $4.1 trillion labour effect, a $205 billion market.
Business companies should also do well. Morgan Stanley said that the use of AI could reach 20% in the next three years, which would be a $150 billion spending chance.