New IMF analysis shows nearly 40 percent of global labor market is exposed to artificial intelligence
A new analysis from the International Monetary Fund (IMF) has found that almost 40 percent of the global labor market is at risk of being impacted by the rise of artificial intelligence (AI). This impact is expected to be most keenly felt in high-skilled jobs and in advanced economies, according to the report released on Sunday.
The report delves into the benefits and consequences of AI and examines how different labor sectors and economies are likely to be affected by this technological shift. In advanced economies, around 60 percent of jobs are expected to be exposed to AI, with roughly half of those workers benefiting from increased productivity while the other half faces the potential of seeing their core tasks replaced by AI, leading to reduced demand for labor, lower wages, and fewer job opportunities.
In emerging markets, the report suggests that 40 percent of jobs are likely to be exposed to AI, while in low-income countries, this figure stands at 26 percent. However, the report also forecasts that emerging markets and low-income countries are less equipped to harness the potential of AI when they are exposed, leading to increased inequality in these regions.
The IMF warns that AI is likely to worsen inequality in advanced economies as well, with those who have access and expertise in using AI benefiting from increased income and productivity, while others are left behind. IMF Managing Director Kristalina Georgieva emphasized the need for policymakers to prepare for the far-reaching effects of AI on the global economy, calling for the establishment of comprehensive social safety nets and offering retraining programs for vulnerable workers to mitigate the impact of AI on inequality.
As the world continues to grapple with the implications of AI on the labor market, it is crucial for countries to address the potential social tensions that may arise from this technological revolution. By implementing inclusive measures that protect livelihoods and curb inequality, the global community can effectively navigate the transition to an AI-driven economy.
Additionally, it is important to note that the historic context of AI’s impact on the labor market can be traced back to the industrial revolution, where technological advancements similarly transformed the nature of work and led to significant societal changes.
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