AI Set to Transform Jobs Rather Than Eliminate Them: Morgan Stanley

New Delhi: Concerns that artificial intelligence could erase millions of jobs may be overstated, according to a research note from Morgan Stanley, which says AI is more likely to reshape the nature of work than destroy employment opportunities altogether.

The report noted that while automation will affect certain roles, most workers are unlikely to be permanently displaced. Instead, many are expected to transition into new kinds of jobs—some of which have yet to emerge—as AI adoption accelerates across industries.

Drawing parallels with major technological shifts over the past 150 years, including electricity, mechanised farming, computers and the internet, the bank said such innovations transformed industries and skill requirements without eliminating human labour. It cited the introduction of spreadsheets in the 1980s as an example: although they reduced some clerical tasks, they enabled professionals to focus on higher-value work and helped create new careers in finance.

Morgan Stanley expects AI to follow a similar trajectory by altering job types, occupations and skill sets. As companies integrate AI into their operations, new leadership positions such as chief AI officers are likely to emerge to oversee deployment and governance.

The report also highlighted rising demand for AI governance specialists, particularly in regulated sectors like healthcare. Fields such as data regulation, cybersecurity and policy oversight are expected to need skilled professionals to ensure responsible and compliant use of AI systems.

In technology, hybrid roles blending product management and engineering are projected to grow, aided by natural-language coding tools that allow product managers to build and test early prototypes. Across industries, highly specialised roles are likely to emerge—from AI personalisation strategists and supply-chain analysts in consumer businesses to experts in predictive maintenance and intelligent energy systems in industrial firms. Healthcare could see growth in roles focused on computational genetics and oversight of AI-driven diagnostics.

The bank added that fears of AI-led disruption wiping out entire sectors may be exaggerated. Services and cyclical sectors most exposed to such concerns account for only about 13 per cent of the market value of the S&P 500, it noted.

With inputs from IANS