Artificial intelligence (AI) is anticipated to impact nearly 40% of all jobs, as per a recent analysis by the International Monetary Fund (IMF).
According to IMF’s managing director Kristalina Georgieva, “in most scenarios, AI will likely worsen overall inequality,” emphasizing the need for policymakers to address this trend and prevent further social tensions.
The IMF predicts that AI will likely affect around 60% of jobs in advanced economies, with workers benefiting from enhanced productivity in half of these cases.
However, in some instances, AI may replace tasks currently performed by humans, potentially reducing labor demand, impacting wages, and even eliminating jobs.
Contrary to this, the IMF projects that only 26% of jobs in low-income countries will be affected by AI.
This aligns with a 2023 Goldman Sachs report estimating that AI could replace the equivalent of 300 million full-time jobs but could also lead to new job opportunities and increased productivity.
UK Prime Minister Rishi Sunak downplayed concerns about AI’s impact on jobs, asserting that education reforms would bolster skills and mitigate negative effects.
However, Georgieva highlights that many countries lack the necessary infrastructure and skilled workforce to harness AI’s benefits, posing a risk of increased inequality among nations over time.
The IMF analysis suggests that higher-income and younger workers might experience a disproportionate increase in wages with AI adoption, while lower-income and older workers could face challenges.
Georgieva emphasizes the importance of establishing comprehensive social safety nets and retraining programs to make the AI transition more inclusive, protect livelihoods, and curb inequality.
This discussion on AI and its societal impacts occurs amid global business and political leaders gathering at the World Economic Forum in Davos, Switzerland.
The technology is facing increased regulation worldwide, with European Union officials recently reaching a provisional deal on the world’s first comprehensive laws to regulate AI.
The European Parliament is set to vote on the AI Act proposals early this year, but any legislation will not take effect until at least 2025. The US, UK, and China have yet to publish their own AI guidelines.
Source-BBC
