A recent International Monetary Fund (IMF) analysis indicates that artificial intelligence (AI) may impact nearly 40% of jobs globally. This development, as IMF’s managing director Kristalina Georgieva highlights, could exacerbate existing inequalities. Georgieva draws attention to the need for policy interventions to mitigate potential social strains caused by AI.
“Many of these countries don’t have the infrastructure or skilled workforces to harness the benefits of AI, raising the risk that over time the technology could worsen inequality among nations,” said Georgieva.
The IMF analysis reveals a more pronounced effect of AI in advanced economies, with about 60% of jobs potentially affected. While AI integration could boost productivity in some jobs, it also poses a risk to labour demand, potentially reducing wages and eliminating some positions.
“It is crucial for countries to establish comprehensive social safety nets and offer retraining programs for vulnerable workers,” said Georgieva. “In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality.”
In contrast, low-income countries might see a lesser impact, with AI affecting around 26% of jobs. This forecast aligns with a 2023 Goldman Sachs report predicting AI’s replacement of the equivalent of 300 million full-time jobs but also anticipating new job creation and productivity increases.
UK Prime Minister Rishi Sunak, speaking in November, downplayed AI’s job impact, citing educational reforms as a mitigating factor. However, the IMF warns that lower-income and older workers could be disproportionately disadvantaged, while higher-income and younger workers might benefit more.
These issues are gaining attention at the World Economic Forum in Davos, Switzerland, where AI, bolstered by the rising popularity of tools like ChatGPT, is a key discussion point. The topic is also gaining regulatory interest. The European Union has made preliminary moves towards the world’s first comprehensive AI laws, with the European Parliament set to vote on the AI Act proposals soon, although implementation wouldn’t occur before 2025. Meanwhile, major players like the US, UK, and China are yet to release their AI regulatory frameworks.
Featured image: isak boije, PlaygroundAI
