IMF: AI to impact 40% of jobs and worsen inequality

A recent analysis by the International Monetary Fund (IMF) predicts that artificial intelligence (AI) is poised to impact nearly 40% of jobs worldwide. The probability for advanced economies is higher, at about 60%.

IMF Managing Director Kristalina Georgieva warns that, in most scenarios, AI could exacerbate overall inequality. She emphasized the need for policymakers to confront this concerning trend and prevent further social tensions.

While AI integration may enhance productivity for about half of the affected jobs in advanced economies, in other instances, it poses a threat by potentially displacing human roles, impacting wages, and causing job losses.

The IMF projects a lower 26% impact on jobs in low-income countries, attributing this to their limited infrastructure and skilled workforce, which may hinder their ability to harness AI benefits and exacerbate global inequality.

The IMF urges nations to establish comprehensive social safety nets and retraining programs, particularly for vulnerable workers, to ensure an inclusive transition to AI.

The analysis coincides with discussions on AI at the World Economic Forum in Davos, Switzerland, where global leaders are grappling with the technology’s implications.

While the European Union has taken steps towards regulating AI, the US, UK, and China are yet to publish their guidelines, reflecting the ongoing international effort to navigate the challenges posed by the rapid advancement of artificial intelligence.