IMF Issues Warning: Artificial Intelligence Expected to Impact Nearly 40% of Global Jobs, Exacerbating Overall Inequality.

By Maggie Last updated Jan 15, 2024

The International Monetary Fund has warned that around 40 percent of the world’s jobs will be affected by the increase in skills. High-income economies face greater challenges than emerging markets and low-income countries, according to the Washington DC-based research institute. The International Monetary Fund generally emphasizes that the integration of artificial intelligence technology will completely reduce inequality.

IMF Managing Director Kristalina Georgieva called for attention to this concern and asked policymakers to solve the problem. Georgieva emphasized that artificial intelligence should be prevented from becoming more social. While we are on the verge of a technological revolution that could boost productivity, stimulate global growth, and increase global income, there is also a risk of rising unemployment and inequality, he said.

The report says around 60% of jobs in high-income countries will be affected by skills, and around half of these jobs will be achieved by leveraging the use of technology to generate profits. By comparison, AI exposure is estimated at 40% in emerging markets and 26% in low-income countries.

The findings suggest that emerging markets and low-income countries will experience fewer disruptions from AI in the short term. However, the IMF warns that these countries lack the infrastructure and skilled workers needed immediately to take advantage of AI, which could increase the risk of inequality.

The International Monetary Fund also highlighted the possible impact of artificial intelligence on income and income. Wealth inequality within countries warns of the potential for polarization across income classes. Workers who can benefit from artificial intelligence may see increases in productivity and wages, while those who cannot benefit may see a decrease.

The IMF’s warning follows earlier concerns from Goldman Sachs, which estimated that generative AI could affect as many as 300 million jobs worldwide. Despite its potential impact on business, Goldman Sachs confirmed that the technology has the potential to increase productivity, increase economic growth, and increase domestic production (GDP) by up to 7%.

The publication of the IMF report coincided with the World Economic Forum held in Davos, Switzerland, where business and political leaders came together. The theme of this annual event is “Rebuilding Trust” and aims to promote open and constructive dialogue on a variety of global issues. The pros and cons of artificial intelligence should be the main topic of discussion as executives express concerns about the technology’s potential impact on business and inequality. The World Economic Forum has been criticized in recent years for being seen as inconsistent, ineffective, and irrelevant.