IMF Report Predicts AI to Impact 40% of Jobs, Deepen Inequality

According to a recent analysis by the International Monetary Fund (IMF), almost 40% of all jobs are expected to be impacted by artificial intelligence (AI). The IMF's managing director, Kristalina Georgieva, expressed concern that AI will likely worsen inequality in most scenarios. She emphasized the need for policymakers to address this troubling trend to prevent further social tensions arising from the technology. The widespread use of AI has sparked a debate about its benefits and risks. The IMF predicts that AI will affect a larger percentage of jobs, approximately 60%, in advanced economies. In some cases, workers will benefit from the integration of AI, as it enhances productivity. However, in other instances, AI has the potential to replace humans in performing essential tasks. This could lead to a reduced demand for labor, negatively impacting wages and causing job losses. In low-income countries, the IMF projects that AI will affect a smaller proportion of jobs, only 26%. Georgieva highlighted the lack of infrastructure and skilled workforce in these nations, which poses a risk of widening inequality among nations. The IMF also noted that higher-income and younger workers might experience a disproportionate increase in wages with the adoption of AI, while lower-income and older workers could fall behind. Georgieva emphasized the importance of establishing comprehensive social safety nets and offering retraining programs to protect vulnerable workers and ensure a more inclusive transition to AI. These findings coincide with the ongoing discussions surrounding AI at the World Economic Forum in Davos, Switzerland. The technology is attracting increased regulation globally, with European Union officials recently reaching a provisional deal on comprehensive laws to regulate AI's use. However, any legislation is not expected to take effect until at least 2025, pending the European Parliament's vote on the proposed AI Act. As of now, the United States, the United Kingdom, and China have not released their own AI guidelines.