Routine jobs across banking, retail, healthcare and education face highest AI disruption: Goldman Sachs
New Delhi, July 30
Routine and repetitive jobs across financial services, retail trade, healthcare and education are likely to face the highest disruption from generative artificial intelligence, while skilled professionals in these sectors are more likely to see AI complement their work rather than replace it, according to a Goldman Sachs report.
The report said the impact of Gen-AI will differ across occupations depending on the complexity of the task, with lower-difficulty and repetitive activities carrying a higher likelihood of automation.
It stated, "Skilled-service sectors appear better placed for AI complementarity, while routine service sectors face higher substitution risk Note where is tech services sector".
In the financial services sector, the report said Gen-AI can complement analyst roles by automating some basic modelling work, classified as difficulty level 3. However, it is more likely to completely substitute routine back-office functions such as basic compliance checks, which fall under difficulty level 1.
The report noted that financial services account for around 6 per cent of total employment, excluding agriculture.
The report classifies tasks based on their level of difficulty, with lower levels representing routine, repetitive activities that are more susceptible to automation by Gen-AI, while higher levels denote more complex tasks that are more likely to be complemented by AI rather than fully replaced.
Accordingly, tasks classified under difficulty level 1 face the highest substitution risk, whereas higher-level tasks are expected to continue requiring significant human involvement alongside AI assistance.
In retail trade, Gen-AI is expected to complement sales staff by assisting with inventory management, covering difficulty levels 2 to 4. At the same time, the technology is likely to substitute cashier roles through self-checkout systems, a difficulty level 1 task, some of which are already in use.
According to the report, retail trade accounts for around 20 per cent of total employment outside agriculture, making it one of the largest sectors in terms of workforce.
For the healthcare sector, Goldman Sachs said Gen-AI is more likely to augment doctors by assisting in diagnostics and treatment planning, classified as difficulty level 6, rather than replacing them.
However, routine administrative functions such as appointment scheduling, categorised as difficulty level 2, are more likely to be automated. Healthcare accounts for around 3 per cent of total employment excluding agriculture.
In the education sector, the report said Gen-AI can complement tutors through personalised learning tools, involving difficulty levels 3 and 4.
On the other hand, routine work such as grading assessments or multiple-choice tests with standardised answers, classified as difficulty level 1, is more likely to be substituted by AI. Education accounts for around 6 per cent of total employment outside agriculture.
The report suggests that across these major sectors, Gen-AI is expected to primarily automate routine, low-complexity tasks while supporting professionals engaged in higher-value and more complex work, indicating that the technology is more likely to reshape job roles than uniformly replace them.
— ANI
Reader Comments
As someone working in a bank, I can tell you that automation of basic compliance checks is already happening. But honestly, it makes our jobs easier – we can focus on complex cases and customer relationships. The report is right about analysts being complemented by AI. I use AI tools for data modelling and it saves me hours. The key is to adapt and learn new skills. Those who resist change will be left behind.
Healthcare sector being mentioned as 'augmented' not replaced – that's reassuring! But what about the paramedics, lab technicians, and nursing staff who do routine work? The report only talks about doctors. In India, we have a severe shortage of doctors but plenty of paramedical staff. If AI automates their routine tasks, it could either free them up for more patient care or displace them. The devil is in the details.
Interesting perspective from a global bank, but they miss the Indian context entirely. In education, for example, our teachers already handle classes of 50-60 students. Personalised learning tools? That's a luxury most government schools can't afford. The real disruption in India might be slower because of infrastructure gaps and cost barriers. The report assumes a developed world scenario where AI tools are readily available.
Retail trade is 20% of employment outside agriculture! That's huge. If cashier jobs get automated with self-checkout, what happens to the millions of young men and women working in Kirana stores and supermarkets? But then again, Indians love personal service – we still prefer talking to a human at the counter. Maybe AI disruption in retail will be slower in India than in the West. Uncleji at the corner shop isn't going anywhere! 😄
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.