Artificial intelligence (AI) is expected to impact global employment significantly, according to the International Monetary Fund (IMF) report.
The report states that around 40% of jobs worldwide will be affected by AI, with developed economies experiencing a greater impact than emerging markets and low-income countries.
AI will affect 40 percent of jobs
In a blog post, IMF Managing Director Kristalina Georgieva noted that AI could increase overall inequality and urged policymakers to take proactive measures to prevent this from happening. Georgieva emphasized the need for comprehensive social safety nets and retraining programs for workers whom AI may displace.
Georgieva explained that AI may replace some jobs but is more likely to complement human work, with around 60% of jobs in developed economies affected. However, only half of the jobs affected by AI will face negative consequences, while the rest could benefit from increased productivity gains due to AI integration.
The IMF chief emphasized the importance of helping low-income countries seize the opportunities offered by AI, recognizing its enormous potential for everyone. He also emphasized the need for an AI-related productivity boost to sustain global economic growth and unlock productivity for a positive global narrative.
The IMF report also predicts that emerging markets and developing economies will experience less of the initial impact of AI on labor markets but are less likely to benefit from the productivity gains that AI integration can bring.
Georgieva warned that 2024 will be a challenging year for fiscal policy globally as countries deal with debt burdens from the COVID-19 pandemic and manage depleted buffers. She expressed concern that governments could face pressure to increase spending or cut taxes to win public support, potentially undermining progress made in tackling high inflation.
The IMF will release updated economic forecasts later this month, and Georgieva said the global economy is generally on track to meet previous projections.
Overall, the IMF report highlights the potential impact of AI on employment and the need for policymakers to take proactive measures to mitigate its effects. It also emphasizes the importance of unlocking productivity for a positive global narrative and helping low-income countries seize the opportunities presented by AI.
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