The IMF says AI will take 40% of jobs and increase inequality

  • Written by Annabelle Liang
  • Business reporter

image source, Getty Images

IMF Managing Director Kristalina Georgieva says that “in many scenarios, AI is likely to increase overall inequality.”

Ms Georgieva adds that policymakers should pay attention to the “disturbing trend” to “prevent technology from further inflaming social tensions”.

The spread of AI has drawn attention to its benefits and risks.

The IMF said artificial intelligence is likely to affect a larger share of jobs – about 60% – in advanced economies. In half of these cases, employees can expect to benefit from the integration of artificial intelligence, which will increase their productivity.

In other cases, AI will have the ability to perform basic tasks currently performed by humans. This can reduce labor demand, affect wages and even eliminate jobs.

Meanwhile, the IMF predicts that this technology will affect just 26% of jobs in low-income countries.

It repeats in 2023. A Goldman Sachs report estimated that 300 million jobs could be replaced by artificial intelligence. full-time jobs, but it is argued that new jobs may come along with the productivity boom.

Ms Georgieva said that “many of these countries do not have the infrastructure or skilled workforce to take advantage of AI, so there is a risk that over time the technology could exacerbate inequality between nations”.

In general, higher-income and younger workers may experience a disproportionate increase in wages following the adoption of AI.

Lower-income and older workers may be left behind, the IMF believes.

“It is crucial that countries create comprehensive social safety nets and offer retraining programs for vulnerable workers,” Georgieva said. “In doing so, we can make the AI ​​transition more inclusive, protect livelihoods and curb inequality.”

The IMF analysis comes as world business and political leaders gather for the World Economic Forum in Davos, Switzerland.

AI is a topic of discussion following the rise in popularity of apps like ChatGPT.

China has introduced some of the world's first national AI regulations, which include rules for how algorithms are designed and implemented.

October month. President Biden signed an executive order requiring developers to share AI-related safety findings with the US government.

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