The potential impact of artificial intelligence (AI) on global employment has been brought to attention by the International Monetary Fund (IMF). In a recent warning, the IMF, headquartered in Washington, D.C., stated that approximately 40 percent of jobs worldwide could be affected by AI. The IMF also noted that high-income countries face a greater risk compared to emerging markets and low-income nations.
The assessment conducted by the IMF revealed that AI has the potential to exacerbate inequality in the job market, creating a concerning situation. Kristalina Georgieva, head of the IMF, has called upon policymakers to address this issue and take proactive measures to prevent the escalation of social tensions caused by technology, particularly artificial intelligence.
Georgieva emphasized the significance of the technological revolution that lies ahead, which has the potential to drive productivity, global growth, and increased incomes worldwide. However, she also cautioned that this revolution could lead to job displacement and deepen existing inequality.
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Impact of AI on jobs in high-income countries
According to the IMF, high-income countries are expected to witness a significant influence of AI on jobs, with approximately 60 percent of positions potentially being affected. However, it is worth noting that around half of these jobs could experience positive effects as AI is integrated to improve productivity.
In comparison, emerging markets are projected to face a 40 percent impact from AI, while low-income countries may experience a 26 percent influence. These figures suggest that, in the short term, emerging markets and low-income countries may encounter fewer disruptions caused by AI compared to high-income nations.
Nevertheless, the IMF cautions that these nations are currently lacking the essential infrastructure and skilled workforce required to fully leverage the advantages of AI. This situation poses a risk of heightened inequality, along with potential negative consequences arising from the adoption of technology.
IMF’s concerns on AI and income inequality
Additionally, the IMF has raised concerns about the potential consequences of AI on income and wealth inequality within nations. It has cautioned about the potential for a “polarization within income brackets,” indicating that individuals who can effectively harness AI may witness enhanced productivity and higher wages, whereas those who lack such capabilities may face the risk of widening the gap and falling further behind.
Goldman Sachs’ cautionary statement on Generative AI
Furthermore, Goldman Sachs previously issued a cautionary statement indicating that generative AI could affect up to 300 million jobs worldwide. However, the Wall Street Bank also acknowledged the positive aspects of AI, highlighting its potential to enhance labor productivity, contribute to economic growth, and potentially boost gross domestic product (GDP) by up to 7 percent.
The release of the IMF report coincides with the convening of prominent business and political figures from around the world at the World Economic Forum (WEF) in Davos, Switzerland. The annual WEF gathering, centered around the theme of “Rebuilding Trust,” is scheduled to continue until Friday.
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