The International Monetary Fund (IMF) has warned that almost 40% of global jobs could be impacted by the growing influence of artificial intelligence (AI).
According to CNBC, the assessment indicates that high-income economies are at a higher risk of job disruption than emerging markets and low-income countries.
IMF: AI Could Impact High-Income Nations
The analysis of the Washington, DC-based institution comes as business and political leaders worldwide gather at the World Economic Forum in Davos, Switzerland, this week.
On Sunday, the IMF assessed the possible impact of AI on the global labor market and discovered that, in most cases, this tech will likely worsen overall inequality.
In a statement, IMF Chief Kristalina Georgieva highlighted the potential risks associated with AI and called for proactive measures from policymakers to address this concerning trend. Georgieva emphasized the need to prevent AI from "further stoking social tensions."
"It is crucial for countries to establish comprehensive social safety nets and offer retraining programs for vulnerable workers. In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality," Georgieva said.
The IMF assessed the AI readiness of 125 countries, and the analysis revealed that approximately 60% of jobs in high-income nations could be impacted by AI, and about half of these may benefit from AI integration to enhance productivity. In contrast, AI exposure was estimated at 40% in emerging markets and 26% in low-income countries.
The IMF said this is an indication that these emerging markets and developing economies will face fewer disruptions from AI in the short term as many of these nations lack the infrastructure of skilled workers to harness the benefits of AI, raising the risk that the tech could worsen inequality.
AI Affecting Income and Wealth Inequality, IMF Says
The IMF report also raised concerns about the impact of AI on income and wealth inequality and warned about the "polarization within income brackets."
The organization said workers who can access the benefits of AI may experience increased productivity and higher salaries, while those who cannot are at risk of further falling behind.
"The rapid advance of artificial intelligence has captivated the world, causing both excitement and alarm, and raising important questions about its potential impact on the global economy. The net effect is difficult to foresee, as AI will ripple through economies in complex ways," Georgieva said.
"What we can say with some confidence is that we will need to come up with a set of policies to safely leverage the vast potential of AI for the benefit of humanity," she added.
The 2024 World Economic Forum, under the theme "Rebuilding Trust," which runs from Monday to Friday, aims to provide a crucial space for discussing global economic issues, including the impact of emerging technologies like AI in the workforce ecosystems.
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