Ranking Industries by Their Potential for AI Automation
As the influence of artificial intelligence (AI) continues to grow, industries worldwide are experiencing transformative changes in their operations and practices. To provide valuable insights into this evolving landscape, our sponsor MSCI has conducted a comprehensive analysis, ranking U.S. industries based on their potential for AI-driven automation.
The findings are derived from a March 2023 report by Goldman Sachs Global Investment Research. To estimate automation exposure, the authors utilized the O*NET occupational database, which outlines the specific tasks performed by various occupations. The estimated exposure was then weighted by the employment share of each occupation and aggregated to the industry level.
The results reveal the estimated share of U.S. employment within each industry that could be exposed to AI automation. The top-ranking industries in terms of exposure to AI-driven automation are as follows:
1. Office and administrative support - 46% of employment
2. Legal - 44% of employment
3. Architecture and engineering - 37% of employment
4. Life, physical, and social science - 36% of employment
5. Business and financial operations - 35% of employment
6. Community and social service - 33% of employment
7. Management - 32% of employment
8. Sales and related - 31% of employment
9. Computer and Mathematical - 29% of employment
10. Farming, fishing, and forestry - 28% of employment
The findings highlight that the "office and administrative support" industry is projected to undergo the most significant transformation, with 46% of jobs at risk of automation. Tasks such as data entry, scheduling meetings, and document management are expected to be impacted.
The "legal" industry closely follows, with 44% of employment at risk. AI automation is anticipated to streamline legal processes, including contract analysis, and potentially even predict court case outcomes.
Industries heavily reliant on manual labour, such as "construction and extraction," are expected to be less affected by AI automation.
The impact of AI on labour productivity in the future will depend on its capabilities and adoption rates. Adoption rates may vary globally, as different countries exhibit varying levels of optimism towards AI.
In a more aggressive scenario, Goldman Sachs estimates that AI automation could potentially impact up to 300 million jobs globally, resulting in a 7% increase in annual GDP, equivalent to approximately $7 trillion.
Given the substantial potential for disruption posed by AI, it is crucial for investors to stay informed and proactive. To facilitate this, MSCI has developed the MSCI ACWI IMI Robotics & AI Index, which serves as a benchmark for companies associated with the adoption of AI, robotics, and automation.
