The rise of artificial intelligence (AI) could potentially impact almost 40% of jobs worldwide, exacerbating overall inequality, the International Monetary Fund (IMF) has warned. The IMF’s assessment, revealed at the World Economic Forum in Davos, Switzerland, highlighted that high-income economies are at greater risk than emerging markets and low-income countries. The report stressed the need for policymakers to address this concerning trend and take proactive measures to prevent further social tensions arising from AI. The IMF also cautioned that income and wealth disparities within countries could deepen as workers able to access the benefits of AI experience increased productivity and higher salaries, while others risk falling behind.
The IMF’s analysis found that approximately 60% of jobs in high-income nations could be affected by AI, but around half of these may benefit from its integration to enhance productivity. In comparison, emerging markets face a 40% exposure to AI, while low-income countries face 26%. These figures suggest that while emerging markets and low-income countries may experience fewer immediate disruptions, they have limited infrastructure and skilled workers to harness AI’s immediate benefits, heightening the risk of worsening inequality.
Goldman Sachs previously warned that generative AI alone could impact up to 300 million jobs worldwide, albeit acknowledging the potential for labor productivity and GDP growth by as much as 7%. The IMF’s report aligns with an increasingly critical discussion on the benefits and drawbacks of AI taking place at the World Economic Forum in Davos, with the theme of Rebuilding Trust. The annual gathering aims to facilitate open dialogue between policymakers, business leaders, and civil society, addressing pressing issues such as the impact of AI.
It is important for global leaders to grapple with the challenges posed by AI to prevent further widening of societal inequality. The IMF’s analysis underscores the urgency of addressing this issue through collaborative efforts between governments, businesses, and technology experts. By ensuring that AI is harnessed responsibly and equitably, it has the potential to boost productivity, foster economic growth, and raise living standards. However, without adequate measures to mitigate its negative consequences, the technology could deepen existing inequalities, leaving vulnerable populations further marginalized.
In summary, the IMF’s warning of the potential consequences of AI on the global job market serves as a call to action for policymakers to tackle the growing inequality exacerbated by technological advancements. As discussions continue at the World Economic Forum, the need to proactively address this troubling trend is paramount. The transformative power of AI can only be harnessed for the betterment of society with careful planning, collaboration, and a focus on inclusivity to prevent the exacerbation of existing inequalities.
