The International Monetary Fund (IMF) has released a startling analysis regarding the influence of Artificial Intelligence (AI) on jobs worldwide. According to the IMF, AI is set to impact nearly 40% of all jobs globally. This projection is particularly significant in advanced economies, where about 60% of jobs might be affected. Conversely, in low-income countries, the figure stands at 26%.
The IMF’s managing director, Kristalina Georgieva, expressed concern, stating: “In most scenarios, AI will likely worsen overall inequality.”
Inequality concerns & policy implications
The IMF’s analysis raises serious concerns about the exacerbation of inequality. Ms. Georgieva points out the risk of AI “further stoking social tensions.” She urges policymakers to address this “troubling trend” to prevent adverse outcomes. The IMF believes that higher-income and younger workers might experience wage increases post AI adoption. In contrast, lower-income and older workers could fall behind.
“It is crucial for countries to establish comprehensive social safety nets and offer retraining programmes for vulnerable workers,” Ms. Georgieva advised. This approach aims to make the AI transition more inclusive, thus protecting livelihoods and curbing inequality.
Global focus on AI regulation
The issue of AI’s influence on the job market is a topic of discussion at the World Economic Forum in Davos, Switzerland. This comes amid a surge in the popularity of AI applications like ChatGPT. Concurrently, there is a global trend towards increasing regulation of AI. The European Union has reached a provisional deal on comprehensive laws to regulate AI use. China has introduced national regulations on AI, focusing on algorithm development and deployment.
In the United States, President Biden signed an executive order requiring AI developers to share safety results with the government. Following this, the UK hosted an AI Safety
Summit, resulting in a declaration on the safe development of AI signed by multiple countries. These measures reflect a growing awareness and responsiveness to the challenges posed by AI, emphasizing the need for careful management of its implications for the global workforce.
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