The generative artificial intelligence will redefine industries, transform economies, and kill human jobs.

The development of increasingly powerful large language models (LLMs), supercharged by advances in robotics, will bring sweeping changes to everything from employment to regulation of the technology in 2025. The emerging generative artificial intelligence will redefine industries, transform economies, and kill many human jobs, according to Goldman Sachs chief information officer Marco Argenti.

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Argenti, a former vice president of technology at Amazon Web Services, has made five predictions on the bank’s website about how AI could evolve and interact with businesses and society in the near future.

1. Hybrid workforce

• Key Development: AI systems will achieve greater human-like capabilities, enabling their integration into hybrid teams alongside human workers.

• Impact: Companies will reskill human managers to oversee AI-human collaboration, , leading to the emergence of "human and machine resources" departments. Poor-performing AI models may face "layoffs," being replaced by improved AI or human workers. 

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• Labor Market Consequences: Job roles will shift towards managing and optimizing AI collaboration. Demand for AI-related training and hybrid management skills will increase, while some routine jobs may face displacement.

2. Expert AI models

• Key Development: Advanced AI systems with specialized, industry-specific knowledge will emerge, powered by fine-tuned training on proprietary data or retrieval-augmented generation (RAG).

• Impact: Expert AI will revolutionize fields like medicine, finance, robotics, and material sciences by providing precision tools for specialized tasks.

Goldman Sachs CIO Marco Argenti. Credit: Business Insider

• Global Economic Consequences: Enhanced productivity and innovation across industries, but a potential divide between businesses that can afford expert AI integration and those that cannot.

3. AI-driven robotics

• Key Development: Combining LLMs with robotics will allow AI to experience and interact with the physical world, enhancing reasoning and adaptability. Commodity hardware will be transformed into high-performance components.

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• Impact: The cost of integrating robotics and AI will decrease, accelerating advancements in automation and physical task execution.

• Labor Market Consequences: Jobs in manufacturing, logistics, and service industries may experience significant automation, while demand for AI and robotics engineers will rise.

4. Regulatory evolution

• Key Development: Companies will adopt responsible AI principles as part of self-regulation, even as national and global regulatory frameworks continue to evolve.

• Impact: CEOs and boards will prioritize ethical AI practices, emphasizing transparency, fairness, and accountability. 

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• Global Economic Consequences: Businesses that align with responsible AI practices may gain competitive advantages, fostering consumer trust and compliance in diverse markets.

5. Large model consolidation

• Key Development: The cost of training and maintaining advanced AI models will limit their development to a few major players, similar to Formula One engine makers.

• Impact: Startups will pivot from model creation to offering solutions in compliance, safety, data integration, and user experience.

• Global Economic Consequences: A concentration of AI power among a few corporations could create monopolistic tendencies, raising concerns about accessibility and competition.

Overall implications

AI advancements in 2025 will reshape the labor market by creating new roles and skills while displacing others through automation. The global economy will benefit from increased productivity and innovation but may face challenges in managing ethical AI practices, equitable access to technology, and the potential for job polarization.

Policymakers and businesses must address these challenges to ensure sustainable and inclusive growth, the expert recommended.

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