Are CEOs Replacing Junior Hires With AI? One Goldman Sachs Leader Says It's Already Happening

Joseph Briggs, senior global economist at Goldman Sachs, discusses the emerging impact of generative AI on U.S. employment trends during a recent podcast episode.

The tech sector is experiencing a notable hiring slowdown, particularly affecting younger workers aged 20-30 who face rising unemployment rates. While most companies haven't fully implemented AI in production, early indicators suggest significant workforce changes ahead. Tech unemployment among young workers has increased by 3 percentage points this year, with CEOs pausing junior hiring as they deploy AI solutions.

• Tech sector employment growth has declined after 20 years of linear expansion, with automation replacing roles in software development and IT support
• Goldman Sachs is testing Devin, an AI-powered software engineer that can handle complex coding tasks with minimal human oversight
• Despite automation trends, employers increasingly value human skills like communication, leadership, and complex problem-solving in AI-related positions
• AI skill demand is expanding beyond traditional tech into marketing, education, finance, and human resources sectors