AI could displace 40% of jobs, worsen equality: IMF
The International Monetary Fund (IMF) has shared an analysis revealing that artificial intelligence (AI) could impact nearly 40% of all jobs. Advanced economies may face more significant effects than emerging markets and low-income countries. IMF Managing Director Kristalina Georgieva cautions that "in most scenarios, AI will likely worsen overall inequality," and urges policymakers to tackle this "troubling trend" to avoid increased social tensions.
Advanced economies to face greater impact
The analysis indicates that rather than completely replacing certain jobs, AI is more likely to complement human work. IMF's report suggests that AI might influence about 60% of jobs in advanced economies. In half of these cases, workers could benefit from AI integration, boosting their productivity. However, AI might also replace essential human tasks, potentially reducing labor demand, impacting wages, and even eliminating jobs. In low-income countries, AI is expected to affect only 26% of jobs.
Inequality among nations and workers
Georgieva points out that many low-income countries lack the infrastructure or skilled workforce to reap AI's benefits, increasing the risk of growing inequality among nations. Moreover, higher-income and younger workers may experience a disproportionate wage increase after adopting AI, while lower-income and older workers could fall behind. Georgieva recommends countries create "comprehensive social safety nets" and provide retraining programs for vulnerable workers.
AI discussions at World Economic Forum
This analysis comes as global business and political leaders gather at the World Economic Forum in Davos, Switzerland, where AI is a hot topic. Last month, European Union officials agreed on a provisional deal for the world's first comprehensive laws regulating AI use. The European Parliament will vote on the AI Act proposals early this year, but any legislation won't take effect until at least 2025. The US, UK, and China have yet to release their own AI guidelines.
