Artificial intelligence (AI) is anticipated to affect nearly 40% of global jobs, with advanced economies facing a greater share of consequences compared to emerging markets and low-income countries, according to an analysis by the International Monetary Fund (IMF) reported by Bloomberg.
IMF Managing Director Kristalina Georgieva, in a blog post, highlighted that AI is likely to exacerbate overall inequality, calling for proactive measures by policymakers to prevent the technology from intensifying social tensions.
The impact of AI on income inequality will depend on how well the technology complements high earners. Georgieva noted that increased productivity from high-income workers and companies could potentially widen the wealth gap.
The IMF report, published on Sunday, emphasizes the need for countries to implement “comprehensive social safety nets” and retraining programs for vulnerable workers to mitigate the potential negative effects of AI on employment.
While AI may fully replace some jobs, the IMF report suggests that the more probable scenario is that it will complement human work. Advanced economies may witness around 60% of jobs affected, surpassing the impact on emerging and low-income countries.
However, only half of the jobs affected by AI may face negative consequences, with the rest potentially benefiting from enhanced productivity gains due to AI integration.
IMF Chief Georgieva highlighted the need for addressing potential challenges while acknowledging the tremendous opportunities presented by AI. She stressed the importance of helping low-income countries seize the benefits of artificial intelligence.
The report predicts that emerging markets and developing economies may experience a smaller initial impact from AI on labor markets but are also less likely to benefit from the productivity gains that AI integration may bring.
Georgieva emphasized the importance of an AI-related productivity boost for sustaining global economic growth and unlocking positive global narratives.
As governments globally grapple with fiscal challenges in the aftermath of the Covid-19 pandemic, Georgieva cautioned that 2024 could be a “very tough year” for fiscal policy worldwide. She expressed concerns that governments might face pressure to increase spending or cut taxes for popular support, potentially undermining progress made in the fight against high inflation.
The IMF is expected to publish updated economic forecasts later this month, indicating that the global economy is broadly on track to meet previous projections
