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AI Will Transform Jobs, Not Destroy Them: Morgan Stanley Report

A new Morgan Stanley research note argues that artificial intelligence will reshape the job market rather than destroy it, similar to past technological revolutions like electricity and the internet. The report suggests AI will change job types and required skills, leading to the creation of new roles such as Chief AI Officers and AI governance specialists. It highlights that while some tasks will be automated, the shift will enable workers to focus on more complex, higher-value work across sectors like healthcare, tech, and consumer industries. The bank concludes that fears of AI causing mass unemployment are overstated, as services and cyclical sectors most associated with disruption fears represent a small portion of market value.

Key Points: AI to Reshape Jobs, Not Eliminate Them: Morgan Stanley

  • AI to automate some roles but create new ones
  • Historical tech shifts didn't replace human labor
  • Demand for AI governance specialists to rise
  • Hybrid tech roles and industry-specific AI experts expected
3 min read

AI will reshape jobs, not destroy them: Morgan Stanley

Morgan Stanley report says AI will change the nature of work, creating new roles like Chief AI Officers, rather than causing mass unemployment.

"AI will change the nature of work rather than eliminate it entirely. - Morgan Stanley report"

New Delhi, Feb 28

Fears that artificial intelligence will wipe out millions of jobs have unsettled workers and investors alike, but a new research note from Morgan Stanley suggests the long-term impact may be less severe than many expect.

According to the report, while some roles will be automated, most workers are unlikely to be permanently left behind. Instead, many are expected to shift into new types of jobs, including roles that do not yet exist. The bank said artificial intelligence will change the nature of work rather than eliminate it entirely.

To support its argument, Morgan Stanley pointed to major technological shifts over the past 150 years, including electricity, mechanised farming, computers and the internet. These innovations transformed industries and altered job requirements, but they did not replace human labour altogether.

The report cited the rise of spreadsheets in the 1980s as a useful example. While spreadsheets reduced the need for certain clerical tasks, they also enabled financial professionals to focus on more complex and higher-value work. Over time, this shift helped create new careers in finance rather than destroy the sector.

Morgan Stanley believed artificial intelligence will follow a similar path by changing job types, occupations and required skills. As AI adoption increases, companies are expected to create new leadership roles such as chief AI officers to oversee integration of the technology across business operations.

The demand for specialists in AI governance is also likely to grow, especially in highly regulated sectors such as healthcare. Areas such as data regulation, cybersecurity and policy oversight are expected to require skilled professionals to ensure responsible use of AI systems.

In the technology sector, hybrid roles that combine product management and engineering are likely to become more common. With the help of natural-language coding tools, product managers may take on more technical responsibilities, building and testing early prototypes before handing projects over to engineering teams.

Artificial intelligence is also expected to create highly specialised roles across industries. Consumer-facing companies may hire AI personalisation strategists and AI supply-chain analysts who combine data expertise with customer experience insights. Industrial firms could rely more on experts in predictive maintenance and intelligent energy systems. In healthcare, new roles may focus on computational genetics and oversight of AI-driven diagnostic tools.

The bank also noted that market concerns about AI disrupting entire industries may be overstated. It pointed out that services and cyclical sectors, which have seen weakness linked to disruption fears, account for only about 13 per cent of the market value of the S&P 500.

- IANS

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Reader Comments

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Rohit P
Absolutely agree! Look at UPI and digital payments in India. It changed the banking job landscape but created so many new roles in fintech, cybersecurity, and app development. AI will be the same. The government and companies must invest in training. 🇮🇳
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Aditya G
While I hope this is true, I'm a bit skeptical for the Indian context. Our education system is still catching up. Will a graduate from a tier-2 city college have the same access to learn AI skills as someone in Bangalore or abroad? The transition needs to be inclusive.
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Sarah B
The spreadsheet analogy is perfect. I work in finance in Mumbai, and we use AI tools for data crunching now. It hasn't replaced our team; it just means we spend less time on manual entry and more on strategic analysis and client meetings. It's an enhancement, not a replacement.
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Karthik V
The mention of AI in healthcare is exciting for India. We have a doctor shortage in rural areas. If AI can help with preliminary diagnostics, it could be a game-changer. But as the article says, it will need new professionals to manage and oversee these systems. New jobs will emerge.
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Michael C
Respectfully, I think the report might be too optimistic for certain sectors. In manufacturing and basic customer service, automation has already reduced headcount. The "new jobs" often require skills that the displaced workers don't have. The transition period can be very painful for many families.

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