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A survey by Goldman Sachs Group Inc. (NYSE:GS) found that just 11% of clients in the technology, industrial, and finance sectors are actively cutting jobs as a result of AI adoption. The report gathered insights from more than 100 Goldman Sachs investment bankers.

AI Drives Productivity Overcuts

Bankers told analysts led by Jan Hatzius, chief economist and head of global investment research at Goldman Sachs, that 47% of their clients are using AI to increase productivity and revenue rather than reduce staff, while only one-fifth are using it to cut costs, Fortune reported.

“AI use has so far been more skewed toward raising productivity/revenue than reducing costs,” the analysts wrote.

Tech Sector Leading Job Cuts

According to Fortune, among tech, media, and communications companies, 31% were cutting jobs because of AI.

This week, Amazon.com Inc. (NASDAQ:AMZN) let go of 14,000 middle managers in anticipation of “a leaner workforce.” However, Chamath Palihapitiya, founder of Social Capital, offered a contrasting view, saying these layoffs are "not AI job loss" but instead reflect the unwinding of the "DEI-fueled hiring bonanza" of the past decade.

Tens of thousands of employees have also been let go by Salesforce Inc. (NYSE:CRM) and Accenture PLC (NYSE:ACN) in recent months.

See Also: Mohamed El-Erian Warns Some AI Names Will ‘End Up In Tears’ But Supports Limited Winners In AI’s ‘Rational Bubble’

The impact has been felt most sharply by young tech workers. According to an August report, unemployment among 20- to 30-year-olds in the sector rose nearly 3 percentage points since early 2024, which is four times the increase in the overall jobless rate.

The Federal Reserve is keeping an eye on how AI affects jobs, Federal Reserve Chair Jerome Powell said, according to Fortune.

Financial Sector Faces Largest Future Cuts

Over the course of the upcoming year, Goldman Sachs bankers anticipate that their clients will implement a 4% general headcount reduction. Those cuts might amount to 11% over a three-year period. The largest drop is 14% for financial institutions, and 10% for the technology industry.

“The relatively fast increase in expected adoption and headcount reductions over the next three years highlights that AI impacts on the U.S. labor market could arrive sooner than expected,” the Goldman analysts wrote.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.