The International Monetary Fund (IMF) has predicted that 40 percent of the global workforce will be affected by the introduction of Artificial Intelligence.
According to the IMF, though AI has improved productivity, it is likely to render many jobless in the coming years.
Speaking to journalists on the sidelines of the 2024 IMF-World Bank Spring meeting in Washington DC, Managing Director of the Fund, Kristalina Georgieva, said AI has come to stay.
“A recent IMF study shows that artificial intelligence could affect up to 40 percent of jobs across the world and 60 percent in advanced economies.
“It could enhance workers’ productivity but also threatens some jobs. Investing in digital infrastructure and skills, as well as in strong social safety nets will determine the pace of AI adoption and its impact on productivity.”
The IMF in January this year also predicted that “AI could also affect income and wealth inequality within countries. We may see polarization within income brackets, with workers who can harness AI seeing an increase in their productivity and wages—and those who cannot falling behind. Research shows that AI can help less experienced workers enhance their productivity more quickly. Younger workers may find it easier to exploit opportunities, while older workers could struggle to adapt.
“The effect on labour income will largely depend on the extent to which AI will complement high-income workers. If AI significantly complements higher-income workers, it may lead to a disproportionate increase in their labour income. Moreover, gains in productivity from firms that adopt AI will likely boost capital returns, which may also favour high earners. Both of these phenomena could exacerbate inequality.
“In most scenarios, 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. In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality.”
Explore the world of impactful news with CitiNewsroom on WhatsApp!
Click on the link to join the Citi Newsroom channel for curated, meaningful stories tailored just for YOU: https://whatsapp.com/channel/0029VaCYzPRAYlUPudDDe53x
No spams, just the stories that truly matter! #StayInformed #CitiNewsroom #CNRDigital
