Nearly 40 per cent of global jobs will be impacted by artificial intelligence, with advanced economies facing more exposure than emerging markets and low-income countries, according to an International Monetary Fund analysis.
According to a media report, IMF Managing Director Kristalina Georgieva said in a blog post that, in most scenarios, AI is likely to exacerbate overall inequality, emphasising the need for proactive measures by policymakers to prevent the technology from fueling social tensions.
“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,” she said.
The income inequality impact of AI will depend on how much the technology complements high-earners, with increased productivity from high-income workers and companies potentially widening the wealth gap. Georgieva recommended that countries implement "comprehensive social safety nets" and retraining programmes to support vulnerable workers.
While the analysis suggests the potential for AI to fully replace some jobs, it is more likely to complement human work. Advanced economies are expected to see around 60 per cent of jobs affected, surpassing the impact on emerging and low-income countries. Georgieva's perspective aligns with ongoing discussions on AI at the World Economic Forum in Davos, Switzerland, where global business and political leaders are convening.
Companies have been investing heavily in AI, leading to concerns among employees about the future of their roles. The IMF's analysis comes at a time when regulatory frameworks for AI are being considered globally, with the European Union reaching a tentative deal in December on legislation to establish safeguards for AI, while the United States is still evaluating its federal regulatory stance.
READ MORE: Bill Gates: AI holds Key to global equity transformation
