AI’s Impact on Job Market: IMF Predicts 40% Disruption and Increased Inequality
The International Monetary Fund (IMF) has conducted a new analysis suggesting that artificial intelligence (AI) is likely to impact almost 40% of all jobs. Kristalina Georgieva, the IMF’s managing director, highlights that AI is expected to exacerbate overall inequality in most cases.
The IMF report also indicates that policymakers need to address this issue to prevent further social tensions. The benefits and risks of AI have been the subject of much debate.
According to the IMF, in advanced economies, AI is likely to affect around 60% of jobs, with 50% of workers benefiting from its integration, while the remainder may experience lower wages or even job loss.
Conversely, low-income countries are expected to be less affected by AI, with only 26% of jobs impacted, but the technology could increase inequality among nations. The IMF also suggests that higher-income and younger workers are more likely to benefit from AI, while lower-income and older workers may fall behind.
IMF’s Call for Inclusive Strategies
Therefore, the IMF recommends that countries establish comprehensive social safety nets and retraining programs to make the AI transition more inclusive, protect livelihoods and curb inequality. The IMF analysis is timely, as global political and business leaders gather in Davos, Switzerland for the World Economic Forum, where AI is a hot topic.
The technology is facing greater regulation worldwide, with the EU recently reaching a provisional deal on the world’s first comprehensive laws to regulate AI, while the US, UK and China have yet to publish their own guidelines.The European Parliament will vote on the AI Act proposals early this year, but any legislation will not take effect until at least 2025.
The US, UK and China have yet to publish their own AI guidelines.
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