This weekly update reveals how artificial intelligence is rapidly changing workplaces around the world, especially in the United States. Major research firms and big companies are reporting significant shifts in how they hire, fire, and use workers.

Goldman Sachs, one of the world's biggest banks, published important findings about AI's impact on American workers. They estimate that 6 to 7 percent of the US workforce could lose their jobs if AI becomes widely used. That's millions of people. However, the bank's experts believe this job loss will be temporary. They think new types of jobs will be created as AI technology grows, eventually putting people back to work in different roles.

The research shows that AI could make workers 15 percent more productive when it's fully adopted. This sounds good, but it also means companies might need fewer workers to do the same amount of work. The good news is that most companies are moving slowly. Only 9.3 percent of businesses reported using AI in their daily operations during the past two weeks.

J.P. Morgan, another major financial company, discovered a troubling trend among educated workers. College graduates, who usually have an easier time finding jobs, are now struggling more than usual. Their unemployment rate reached 5.8 percent in March, the highest level in more than four years. This is very unusual because college-educated workers typically do better than the overall job market.

The technology industry is experiencing the most dramatic changes. J.P. Morgan researchers found that three key tech areas completely stopped growing after ChatGPT was released in late 2022. These areas include cloud computing, web search, and computer systems design. For years, these industries had been hiring steadily, but they suddenly stopped adding new workers.

Microsoft made headlines by announcing two rounds of layoffs affecting up to 16,000 workers. The company said these job cuts were partly due to AI making their operations more efficient. Amazon's CEO also warned employees that AI would likely reduce the company's total headcount, though they haven't started laying people off yet.

Some business leaders are taking extreme measures to adapt to AI. One CEO made a shocking decision to fire nearly 80 percent of his staff because they refused to learn AI tools fast enough. He said changing people's minds was harder than teaching new skills, so he decided to hire new workers who already understood AI technology.

Klarna, a Swedish buy-now-pay-later company, provides a clear example of AI replacing human workers. The company introduced an AI customer service system that reduced their need for human agents by the equivalent of 700 full-time workers. Their workforce dropped from about 3,000 to 2,200 agents. However, the company says they didn't actually fire anyone - instead, their outsourced service providers moved those 700 workers to help other clients.

Salesforce, a major software company, reported that AI is now doing 30 to 50 percent of their work. This shows how quickly AI can take over tasks that humans used to do. The company's experience suggests that AI adoption might happen faster than many experts predicted.

Not all companies are rushing to replace workers with AI. Ikea, the Swedish furniture giant, is taking a different approach. They call it a "people-first AI strategy" that focuses on helping AI work alongside humans rather than replacing them. Ikea is using AI to automate specific tasks, not entire jobs, which frees up workers to do more valuable and creative work.

Despite the job losses making headlines, experts predict a positive long-term outcome. The World Economic Forum believes that AI and related technologies will actually create 170 million new jobs by 2030. If this prediction comes true, the world will have more total jobs in five years, not fewer.

Current data suggests that AI's impact on employment is still limited because most companies haven't fully adopted the technology yet. Goldman Sachs researchers found no significant connection between AI exposure and various economic measures like job growth, unemployment rates, or wages. However, they did notice early signs of disruption in specific industries like marketing consulting, graphic design, office administration, and telephone call centers.

The message for workers and businesses seems clear: AI is coming, but the transition is happening gradually. Companies that plan carefully and help their workers learn new skills may do better than those that make sudden, dramatic changes.