Final answer:
Artificial intelligence is expected to significantly increase labor productivity by 2035, potentially boosting global GDP by 7%, but also may cause disruption in low-skill jobs, affecting up to 300 million jobs worldwide.
Step-by-step explanation:
By 2035, artificial intelligence (AI) is expected to have a significant increase in labor productivity. The advancements in AI technology have the potential to greatly enhance the efficiency of various industries, leading to an uptick in overall global GDP by as much as 7% in the next decade, according to Goldman Sachs. However, there is a caveat to this optimistic prediction.
AI could disrupt the labor market, notably impacting low-skill jobs, potentially putting 300 million jobs at risk or eliminating them. Nevertheless, increased productivity in high-skill jobs is expected as AI becomes a more affordable and effective complement to these roles, causing a shift in demand for high-skill labor to the right. Ensuring that guidelines and regulations are in place will be crucial to managing AI's impact and ensuring a smoother transition for the labor market.