Monday January 15, 2024

// January 15th, 2024 // Daily News

Happy Martin Luther King day

IMF warns AI to hit almost 40% of jobs worldwide and worsen overall inequality

KEY POINTS

• The IMF assessed the potential impact of AI on the global labor market and found that, in most cases, AI is likely to worsen overall inequality.
• IMF chief Kristalina Georgieva urged policymakers to tackle this “troubling trend” and proactively take steps “to prevent the technology from further stoking social tensions.”
• The analysis comes as business and political leaders from around the world gather at the World Economic Forum in Davos, Switzerland.

The International Monetary Fund warned that nearly 40% of jobs across the globe could be affected by the rise of artificial intelligence, with high-income economies facing greater risks than emerging markets and low-income countries.

The Washington, D.C.-based institution on Sunday assessed the potential impact of AI on the global labor market and found that, in most cases, the technology is likely to worsen overall inequality.

IMF chief Kristalina Georgieva urged policymakers to tackle this “troubling trend” and to proactively take steps “to prevent the technology from further stoking social tensions.”

“We are on the brink of a technological revolution that could jumpstart productivity, boost global growth and raise incomes around the world. Yet it could also replace jobs and deepen inequality,” Georgieva said.

The IMF noted that about 60% of jobs could be impacted by AI in high-income nations, and roughly half of these may benefit from AI integration to boost productivity.

Comparatively, AI exposure was estimated to come in at 40% in emerging markets and at 26% in low-income countries, respectively.

The findings suggest that emerging markets and low-income countries face fewer disruptions from AI in the short-term. The IMF notes that many of these nations don’t have the infrastructure of skilled workers to harness the immediate benefits of AI, raising the risk that the tech could worsen inequality.

The IMF also flagged that AI could affect income and wealth inequality within countries, warning of “polarization within income brackets.”

It said workers who are able to access the benefits of AI could increase their productivity and salary, while those who cannot are at risk of falling further behind.