Artificial intelligence (AI) is poised to impact nearly 40 percent of global employment, as revealed by a recent analysis conducted by the International Monetary Fund (IMF), signaling a significant shift in the labour landscape.
According to Kristalina Georgieva, the managing director of the IMF, AI’s influence is anticipated to exacerbate overall inequality in most scenarios.
Ms Georgieva underscores the imperative for policymakers to address this concerning trend and take proactive measures to prevent AI from exacerbating social tensions.
The burgeoning prevalence of AI has brought its advantages and risks to the forefront of global discourse.
The IMF’s findings indicate that advanced economies may witness AI affecting a larger proportion of jobs, estimated at approximately 60 percent.
In half of these cases, workers stand to benefit from AI integration, leading to enhanced productivity. However, in other instances, AI could assume roles currently performed by humans, potentially diminishing the demand for labour and impacting wages, even resulting in job displacement.
Conversely, the IMF projects that low-income countries may experience a more modest impact, with AI affecting only 26 percent of jobs.
Last year, Goldman Sachs, which suggested that AI might replace the equivalent of 300 million full-time jobs, accompanied by potential new job creation and increased productivity.
Ms Georgieva said a lot of less affluent nations lack the necessary infrastructure and skilled workforce to harness AI’s benefits, posing a risk of widening inequality on a global scale over time.
IMF stresses the importance of countries establishing comprehensive social safety nets and implementing retraining programmes for vulnerable workers.
This, the lender argues, will make the transition to AI more inclusive, safeguarding livelihoods and mitigating inequality.