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There has been a lot of chatter about how the rise of artificial intelligence (AI) will severely impact a lot of jobs. Now, the International Monetary Fund is adding credence to those claims. In a blog post, Kristalina Georgieva, managing director, IMF, AI has captivated the world causing both “excitement and alarm” and that it is important to ask important questions about its potential impact on the global economy.
In a blog post, she said that IMF has examined the potential impact of AI on the global labour market. “Many studies have predicted the likelihood that jobs will be replaced by AI. Yet we know that in many cases AI is likely to complement human work. The IMF analysis captures both these forces,” she said.
These economies may be most impacted
According to Georgieva, almost 40 percent of global employment is exposed to AI. “Historically, automation and information technology have tended to affect routine tasks, but one of the things that sets AI apart is its ability to impact high-skilled jobs,” she noted. She further said that it’s the advanced economies which face greater risks from AI “but also more opportunities to leverage its benefits compared with emerging market and developing economies.”
As per IMF analysis, in advanced economies, about 60 percent of jobs may be impacted by AI. Roughly half the exposed jobs may benefit from AI integration, enhancing productivity. “For the other half, AI applications may execute key tasks currently performed by humans, which could lower labor demand, leading to lower wages and reduced hiring. She said it will be in the most extreme cases, “some of these jobs may disappear.”
In emerging economies and low-income countries, AI exposure is expected to be 40 percent and 26 percent, respectively — in other words, fewer disruptions from AI. “At the same time, many of these countries don’t have the infrastructure or skilled workforces to harness the benefits of AI, raising the risk that over time the technology could worsen inequality among nations,” she added.
IMF also noted that AI will likely worsen overall inequality, a troubling trend that policymakers must proactively address to prevent the technology from further stoking social tensions. “It is crucial for countries to establish comprehensive social safety nets and offer retraining programs for vulnerable workers,” Georgieva added.
In a blog post, she said that IMF has examined the potential impact of AI on the global labour market. “Many studies have predicted the likelihood that jobs will be replaced by AI. Yet we know that in many cases AI is likely to complement human work. The IMF analysis captures both these forces,” she said.
These economies may be most impacted
According to Georgieva, almost 40 percent of global employment is exposed to AI. “Historically, automation and information technology have tended to affect routine tasks, but one of the things that sets AI apart is its ability to impact high-skilled jobs,” she noted. She further said that it’s the advanced economies which face greater risks from AI “but also more opportunities to leverage its benefits compared with emerging market and developing economies.”
As per IMF analysis, in advanced economies, about 60 percent of jobs may be impacted by AI. Roughly half the exposed jobs may benefit from AI integration, enhancing productivity. “For the other half, AI applications may execute key tasks currently performed by humans, which could lower labor demand, leading to lower wages and reduced hiring. She said it will be in the most extreme cases, “some of these jobs may disappear.”
In emerging economies and low-income countries, AI exposure is expected to be 40 percent and 26 percent, respectively — in other words, fewer disruptions from AI. “At the same time, many of these countries don’t have the infrastructure or skilled workforces to harness the benefits of AI, raising the risk that over time the technology could worsen inequality among nations,” she added.
IMF also noted that AI will likely worsen overall inequality, a troubling trend that policymakers must proactively address to prevent the technology from further stoking social tensions. “It is crucial for countries to establish comprehensive social safety nets and offer retraining programs for vulnerable workers,” Georgieva added.
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