AI To Affect Nearly 40% Of All Jobs: IMF

The proliferation of AI has put its benefits and risks under the spotlight.

AI To Affect Nearly 40% Of All Jobs: IMF

According to a new International Monetary Fund report, artificial intelligence would disrupt roughly 40% of all jobs.

Kristalina Georgieva, managing director of the IMF, says that "in most scenarios, AI will likely worsen overall inequality."

Georgieva says that governments should address the "troubling trend" in order to "prevent the technology from further stoking social tensions."

AI's widespread use has brought its benefits and threats to light.

According to the IMF, AI will certainly affect a larger number of jobs in advanced nations, estimated to be about 60%. In half of these cases, workers may expect to profit from AI integration, which will increase their productivity.

In other cases, AI will be able to do important activities that are currently performed by people. This might reduce demand for labor, lower salaries, and possibly eliminate jobs.

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

Georgieva pointed out that "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."

In general, higher-income and younger workers may receive a disproportionate boost in pay after implementing AI.

The IMF predicts that lower-income and older workers may lag behind.

"It is crucial for countries to establish comprehensive social safety nets and offer retraining programs for vulnerable workers," she said. "In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality."

The IMF report comes as global corporate and political leaders assemble for the World Economic Forum in Davos, Switzerland.

Following the emergence of applications such as ChatGPT, AI has become a hot topic of discussion.

Technology is being increasingly regulated around the world. Last month, European Union officials struck a provisional agreement on the world's first comprehensive legislation governing the use of AI.

The European Parliament will vote on the AI Act ideas early this year, but any legislation will not become effective until at least 2025.

The US, the UK, and China have yet to release their own AI guidelines.