The International Monetary Fund (IMF) has issued a stark warning, predicting that widespread adoption of artificial intelligence (AI) could result in the loss of almost 40% of jobs globally, with high-income economies facing an increased risk of job displacement compared to markets emerging and low-income countries. An IMF assessment released on Sunday highlights the potential of artificial intelligence to widen overall inequality across the world’s economies, prompting IMF chief Kristalina Georgieva to call on policymakers to take proactive action to mitigate these looming challenges.
The IMF’s comprehensive assessment of the impact of artificial intelligence on the global labor market reveals a complex landscape. According to their findings, AI could impact around 60% of jobs in high-income countries, and almost half of them could benefit from AI integration to increase productivity. In contrast, exposure to AI-related disruptions is estimated at 40% for emerging markets and 26% for low-income countries. These numbers suggest that in the short term, emerging markets and low-income countries may experience less disruption from AI. However, the report highlights that a lack of infrastructure and skilled workers in these regions may hinder them from realizing the immediate benefits of AI, potentially exacerbating inequalities.
IMF chief Kristalina Georgieva expressed concern about the “worrying trend” resulting from the potential impact of artificial intelligence on global jobs. She called on policymakers around the world to address this challenge head-on and take active steps to prevent technology from intensifying social tensions. The report highlights the delicate balance between the potential of the technological revolution to boost productivity and global growth, while at the same time risking job displacement and widening inequality.
The IMF analysis also highlights the potential of artificial intelligence to widen income and wealth inequality across countries. The report warns of “polarization within income brackets”, highlighting that workers who can access the benefits of artificial intelligence could see increased productivity and higher wages, while those who cannot do so are at risk of remaining lagging behind economically.
While Goldman Sachs has previously warned of the potential impact of artificial intelligence on 300 million jobs worldwide, acknowledging its potential to boost labor productivity and economic growth, the IMF report provides a detailed view. It highlights the differential impact of AI across income groups and regions, signaling the need to develop tailored strategies to address the complex challenges posed by this transformative technology.
As world leaders gather for the World Economic Forum in Davos, Switzerland, the IMF’s warning about the potential disruption of artificial intelligence and its impact on inequality is taking center stage. The call for proactive measures to address this challenge reflects the urgent need to find a balanced approach to harnessing the benefits of artificial intelligence, while mitigating its potential adverse impacts on jobs and inequalities. The Davos discourse is expected to delve deeper into these issues, highlighting the importance of rebuilding trust and supporting open dialogue between policymakers, business leaders and civil society on navigating the complexities of integrating artificial intelligence into the global economy.
