The impact of artificial intelligence (AI) on jobs and inequality is a topic of concern, according to a new analysis by the International Monetary Fund (IMF). The study reveals that nearly 40% of all jobs will be affected by AI, with managing director Kristalina Georgieva stating that in most cases, AI will likely worsen overall inequality.
In advanced economies, AI is projected to affect around 60% of jobs. While some workers will benefit from the integration of AI, as it enhances productivity in certain cases, others may suffer as AI begins to perform tasks currently executed by humans. This could lead to a decrease in demand for labor, impacting wages and potentially resulting in job loss.
In low-income countries, the IMF predicts that AI will affect only 26% of jobs. Georgieva highlights that many of these nations lack the necessary infrastructure and skilled workforce to harness the benefits of AI, posing a risk of further exacerbating inequality among countries.
The IMF analysis indicates that higher-income and younger workers are likely to experience a disproportionate increase in wages after adopting AI, while lower-income and older workers may face challenges and fall behind. To address this issue, Georgieva stresses the importance of establishing comprehensive social safety nets and offering retraining programs to support vulnerable workers. By doing so, the transition to AI can become more inclusive, protecting livelihoods and mitigating inequality.
The IMF’s findings come at a time when AI is under scrutiny worldwide, leading to increased regulation. European Union Officials recently reached a provisional deal on comprehensive laws to regulate the use of AI, with the AI Act proposals set for a vote in the European Parliament this year. The United States, United Kingdom, and China have yet to publish their own guidelines on AI.
As global business and political leaders convene at the World Economic Forum in Davos, Switzerland, AI remains a key topic of discussion. With the growing popularity of applications like ChatGPT, the need for regulation and addressing the potential impact on jobs and inequality is increasingly urgent.
In summary, the IMF’s analysis highlights the significant influence AI will have on various job sectors, potentially worsening inequality. While certain workers stand to benefit from AI integration, others may face challenges such as job loss and wage reduction. To ensure a more inclusive transition, comprehensive social safety nets and retraining programs are crucial. With AI regulation on the horizon, countries around the world must address these concerns to safeguard livelihoods and curb inequality.
