The rise of artificial intelligence could drastically alter the U.S. and European job markets, according to Goldman Sachs in a Forbes report.

The investment bank estimates 300 million jobs may be lost or diminished as automation accelerates. While AI could drive innovation and increase global GDP by 7%, it also poses significant risks for labor markets.

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AI’s rapid growth mirrors past technological revolutions. Tools like ChatGPT and DALL-E have showcased AI’s potential, with ChatGPT gaining over a million users within five days.

Global investments in AI projects have surged, totaling $94 billion since 2021, according to Stanford’s AI Index Report. AI could add 1% to U.S. GDP by 2030, with industries like administration, legal, and healthcare expected to see major shifts.

Despite its promise, AI exacerbates income inequality. Research from the National Bureau of Economic Research attributes 50% to 70% of wage changes since 1980 to automation.

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Blue-Collar Workers See Wages Decline

Blue-collar workers, particularly those without college degrees, have seen wages decline as jobs are replaced by robotics and specialized software. Meanwhile, white-collar professionals with advanced degrees have largely benefited.

The disruption extends across sectors, with truck drivers, cashiers, and factory workers among those most affected. Emerging AI technologies — like self-driving vehicles and automated kiosks — continue to displace low-skilled roles.

Advanced systems also challenge traditionally secure professions, with robots performing surgeries and detecting illnesses with greater precision than humans.

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Organizations like the World Economic Forum warn of a “double-disruption,” as AI accelerates job displacement. While companies highlight potential economic benefits, critics caution against overlooking the human cost. Jack Dorsey, founder of Twitter, predicts AI will even write its own software, reducing demand for entry-level programming roles.

As AI reshapes economies, experts urge discussions on managing its impact to prevent worsening inequality and job losses.

Read more at Forbes.