About 40% of jobs worldwide could face repercussions due to the increasing influence of artificial intelligence (AI), potentially deepening global inequality, warns the International Monetary Fund (IMF).
IMF Chief Kristalina Georgieva, in a recent blog post, urged governments to establish social safety nets and implement retraining programs to mitigate the impact of AI. She expressed concern about the potential exacerbation of overall inequality by AI and called for proactive measures to prevent it from intensifying social tensions.
Georgieva emphasized that as AI becomes more prevalent in the workforce, its effects will be a mixed bag, benefiting some while posing challenges for others. She suggested that the impact might be more profound in advanced economies compared to emerging markets, with white-collar workers considered more at risk than manual laborers.
In advanced economies, up to 60% of jobs could be influenced by AI, with approximately half expected to benefit from increased productivity. The other half, however, might face reduced demand for labor, leading to lower wages and limited hiring, or even job displacement in extreme cases.
In emerging markets and lower-income nations, 40% and 26% of jobs, respectively, are projected to be affected by AI. Georgieva highlighted the risk of exacerbating inequality in these regions due to the lack of infrastructure and skilled workforces needed to harness AI’s benefits.
The IMF chief also expressed concern about the potential for social unrest, especially if younger, less-experienced workers embrace AI for productivity gains while older workers struggle to adapt.
While acknowledging the transformative potential of AI on the global economy, Georgieva emphasized the need to ensure that AI benefits humanity. She cited opportunities to enhance global output and incomes through the responsible use of AI.
AI took center stage at the World Economic Forum in Davos last year, sparking discussions on its impact on the workforce. As AI technology, such as ChatGPT, gained prominence, concerns about job displacement and the need for workforce adaptation became prominent topics of discussion.
Despite the challenges, there is optimism that widespread AI adoption could significantly boost labor productivity and contribute to a 7% annual increase in global GDP over a 10-year period, according to estimates by Goldman Sachs economists in March 2023. Georgieva concluded her post by emphasizing the need to harness AI’s transformative power while ensuring its positive impact on humanity.
