The International Monetary Fund (IMF) has issued a cautionary note, predicting that the rise of artificial intelligence (AI) may affect nearly 40% of jobs worldwide, with high-income economies facing a higher risk compared to emerging markets and low-income countries.
In its assessment of AI’s potential impact on the global labor market, the Washington, D.C.-based institution emphasized that, in most cases, the technology is likely to exacerbate overall inequality. IMF Chief Kristalina Georgieva urged policymakers to address this “troubling trend” and take proactive measures to prevent technology from escalating social tensions.
Georgieva highlighted the delicate balance between the potential for a technological revolution to boost productivity, global growth, and incomes worldwide, while simultaneously posing a threat to employment and deepening inequality.
The IMF’s findings indicate that approximately 60% of jobs in high-income nations could be impacted by AI, with around half of these jobs potentially benefiting from AI integration to enhance productivity. In comparison, AI exposure is estimated at 40% in emerging markets and 26% in low-income countries. The report suggests that emerging markets and low-income countries may experience fewer immediate disruptions from AI due to a lack of infrastructure and skilled workers, raising concerns that the technology could worsen inequality in the long run.
The report also highlighted the potential for AI to affect income and wealth inequality within countries, warning of “polarization within income brackets.” Workers able to access AI benefits may see increased productivity and salaries, while those unable to do so are at risk of falling further behind.
This warning aligns with Goldman Sachs’ previous estimate that generative AI could impact up to 300 million jobs worldwide, acknowledging the potential for increased labor productivity, growth, and a boost to gross domestic product by as much as 7%.
The IMF’s report coincides with the World Economic Forum (WEF) in Davos, Switzerland, where business and political leaders are gathering to discuss global economic issues. The potential benefits and drawbacks of AI are expected to be a key topic of discussion during the WEF meeting, which is themed “Rebuilding Trust.” Despite criticisms of the WEF in recent years, the event aims to facilitate open and constructive dialogue on pressing global issues.
Source: CNN
