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By: CNN
The International Monetary Fund (IMF) has issued a warning that the surge of artificial intelligence (AI) could impact almost 40% of jobs worldwide, potentially exacerbating inequality.
In a blog post on Sunday, IMF chief Kristalina Georgieva urged governments to establish social safety nets and implement retraining programs to counter the repercussions of AI. Georgieva emphasized that, in most scenarios, AI is likely to worsen overall inequality, posing a concern that policymakers need to proactively address to prevent social tensions from escalating.
She stressed the need for these considerations ahead of the World Economic Forum (WEF) annual meeting in Davos, Switzerland.
The potential effects of AI on jobs are anticipated to be more pronounced in advanced economies compared to emerging markets, primarily due to the perceived higher risk to white-collar workers over manual laborers.
Georgieva highlighted that up to 60% of jobs in more developed economies could be impacted by AI, with approximately half benefiting from increased productivity. The other half, however, may face lower demand, leading to reduced wages and hiring, and in extreme cases, job disappearance.
In emerging markets and lower-income nations, the expected impact on jobs is 40% and 26%, respectively. Georgieva noted that many of these countries lack the necessary infrastructure and skilled workforces to harness the benefits of AI, raising the risk of technology worsening inequality over time.
Georgieva also warned of the potential for AI to contribute to social unrest, particularly if younger, less experienced workers embrace the technology for productivity gains while more senior workers struggle to adapt. Despite the challenges, Georgieva acknowledged the opportunities to boost global output and incomes with the use of AI, emphasizing the transformative potential of AI on the global economy.
The use of AI became a prominent topic at the WEF in Davos last year, especially with the rise of ChatGPT, a generative AI-powered chatbot. The widespread adoption of AI is expected to increase labor productivity and boost global GDP, but the IMF underscores the importance of ensuring that the transformative power of AI benefits humanity.
