[Global] IMF: AI will impact 40% of jobs and worsen inequality

A new International Monetary Fund (IMF) analysis states that AI is poised to affect nearly 40 per cent of all jobs worldwide, BBC News reports.

Kristalina Georgieva - IMF managing director - said, "In most scenarios, AI will likely worsen overall inequality".

According to Ms Georgieva, policymakers should address the "troubling trend" to "prevent the technology from further stoking social tensions".

The rapid spread of AI has led to greater scrutiny of its benefits and risks.

The IMF said AI is likely to affect a greater proportion of jobs - around 60 per cent - in advanced economies. In half of these instances, workers can reportedly expect to see gains from AI integration, which will enhance their productivity while, in other cases, AI will perform key tasks currently carried out by humans. This could potentially lower the demand for labour, impact wages and even wipe out jobs.

The IMF projects that AI tech will affect just 26 per cent of jobs in low-income countries.

The findings reportedly echo a 2023 Goldman Sachs report, which estimated AI could replace the equivalent of 300 million full-time jobs. It also stated that there may be new jobs together with a boom in productivity.

Ms Georgieva said, "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".

Higher-income and younger workers may see a disproportionate pay increase after adopting AI and the IMF believes that lower-income and older workers could fall behind.

"It is crucial for countries to establish comprehensive social safety nets and offer retraining programmes for vulnerable workers," Ms Georgieva said. "In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality."

The IMF analysis follows a gathering of global business and political leaders at the World Economic Forum in Davos, Switzerland.

Artificial Intelligence technology is facing increased regulation across the globe. European Union officials reached a provisional deal on the world's first comprehensive laws to regulate the use of AI in December 2023 and China has introduced some of the world's first national regulations on AI. These reportedly include rules about how algorithms can be developed and deployed.

In October, President Biden signed an executive order which compels developers to share safety results relating to AI with the US government. In November an AI Safety Summit took place in the UK. A number of participating countries signed a declaration on the safe development of AI tech.

Source: BBC News

(Links and quotes via original reporting)

A new International Monetary Fund (IMF) analysis states that AI is poised to affect nearly 40 per cent of all jobs worldwide, BBC News reports.

Kristalina Georgieva - IMF managing director - said, "In most scenarios, AI will likely worsen overall inequality".

According to Ms Georgieva, policymakers should address the "troubling trend" to "prevent the technology from further stoking social tensions".

The rapid spread of AI has led to greater scrutiny of its benefits and risks.

The IMF said AI is likely to affect a greater proportion of jobs - around 60 per cent - in advanced economies. In half of these instances, workers can reportedly expect to see gains from AI integration, which will enhance their productivity while, in other cases, AI will perform key tasks currently carried out by humans. This could potentially lower the demand for labour, impact wages and even wipe out jobs.

The IMF projects that AI tech will affect just 26 per cent of jobs in low-income countries.

The findings reportedly echo a 2023 Goldman Sachs report, which estimated AI could replace the equivalent of 300 million full-time jobs. It also stated that there may be new jobs together with a boom in productivity.

Ms Georgieva said, "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".

Higher-income and younger workers may see a disproportionate pay increase after adopting AI and the IMF believes that lower-income and older workers could fall behind.

"It is crucial for countries to establish comprehensive social safety nets and offer retraining programmes for vulnerable workers," Ms Georgieva said. "In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality."

The IMF analysis follows a gathering of global business and political leaders at the World Economic Forum in Davos, Switzerland.

Artificial Intelligence technology is facing increased regulation across the globe. European Union officials reached a provisional deal on the world's first comprehensive laws to regulate the use of AI in December 2023 and China has introduced some of the world's first national regulations on AI. These reportedly include rules about how algorithms can be developed and deployed.

In October, President Biden signed an executive order which compels developers to share safety results relating to AI with the US government. In November an AI Safety Summit took place in the UK. A number of participating countries signed a declaration on the safe development of AI tech.

Source: BBC News

(Links and quotes via original reporting)