[By Michelle Toh] – The emergence of artificial intelligence (AI) is poised to revolutionize the global job market, with nearly 40% of employment worldwide potentially impacted. This significant change, highlighted by the International Monetary Fund (IMF), suggests a future where AI could intensify economic disparities.

The IMF’s Perspective on AI and Employment

IMF Chief Kristalina Georgieva emphasizes the need for countries to prepare for this shift. She advocates for the establishment of social safety nets and retraining programs to mitigate the effects of AI on the workforce. Georgieva’s concerns, expressed in a recent blog post, highlight the potential for AI to exacerbate existing inequalities, fueling social unrest. This topic is a key focus at the World Economic Forum (WEF) in Davos, where AI’s role in the economy is a central theme.

The Impact on Different Economies

AI’s impact is expected to vary between advanced and emerging economies. In developed countries, up to 60% of jobs could feel the influence of AI, with a mixed bag of outcomes. While some roles may benefit from enhanced productivity, others might face redundancy as AI takes over key tasks. In contrast, emerging markets and lower-income countries face different challenges, with less infrastructure and skilled labor to leverage AI advantages, potentially widening the inequality gap.

The Role of AI in the Global Economy

The rapid advancement and integration of AI technologies, including AI chatbots and systems, have already led to shifts in employment strategies among tech firms. Notably, AI’s potential isn’t solely disruptive; it could also significantly boost labor productivity and global GDP. Georgieva recognizes the dual nature of AI, seeing it as a transformative force that could enhance global output and incomes if managed wisely.

Fian Words

As AI reshapes the global employment landscape, its potential to both disrupt and enhance the economy becomes increasingly apparent. The IMF’s warning serves as a call to action for policymakers to navigate this new era thoughtfully, ensuring AI’s benefits are widely shared.

Source: https://amp.cnn.com/cnn/2024/01/15/tech/imf-global-employment-risk-ai-intl-hnk/index.html