AI to hit 40% of jobs and worsen inequality, IMF says
Artificial intelligence is set to affect nearly 40% of all jobs, according to a new analysis by the International Monetary Fund (IMF).
IMF's managing director
Kristalina Georgieva says "in most scenarios, AI will likely worsen
overall inequality".
Ms Georgieva adds that
policymakers should address the "troubling trend" to "prevent
the technology from further stoking social tensions".
The proliferation of AI has
put its benefits and risks under the spotlight.
The IMF said AI is likely
to affect a greater proportion of jobs - put at around 60% - in advanced
economies. In half of these instances, workers can expect to benefit from the
integration of AI, which will enhance their productivity.
In other instances, AI will
have the ability to perform key tasks that are currently executed by humans.
This could lower demand for labour, affecting wages and even eradicating jobs.
Meanwhile, the IMF projects
that the technology will affect just 26% of jobs in low-income countries.
It echoes a report from
Goldman Sachs in 2023, which estimated AI could replace the equivalent of 300
million full-time jobs - but said there may also be new jobs alongside 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".
More generally,
higher-income and younger workers may see a disproportionate increase in their
wages after adopting AI.
Lower-income and older
workers could fall behind, the IMF believes.
"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 comes as
global business and political leaders gather at the World Economic Forum in
Davos, Switzerland.
AI is a topic of
discussion, following the surge in popularity of applications like ChatGPT.
The technology is facing
increased regulation around the world. Last month, European Union officials
reached a provisional deal on the world's first comprehensive laws to regulate the use of AI.
China has introduced some
of the world's first national regulations on AI, which include rules concerning
how algorithms can be developed and deployed.
In October, President
Biden signed an executive order compelling
developers to share safety results relating to AI with the US government.
The following month the UK
hosted an AI Safety Summit, at which at a declaration on the safe development of the technology was
signed by multiple countries.