AI may affect about 40% of global jobs, some of them may disappear. IMF

The International Monetary Fund (IMF) has warned that almost 40% of jobs worldwide could be impacted by the increasing prevalence of artificial intelligence (AI), potentially exacerbating global inequality. IMF Chief Kristalina Georgieva, in a blog post on Sunday, urged governments to establish social safety nets and implement retraining programs to mitigate the effects of AI.

Georgieva highlighted that, in most scenarios, AI is likely to worsen overall inequality, a concerning trend that policymakers need to proactively address to prevent further social tensions. This call comes ahead of the World Economic Forum (WEF) in Davos, Switzerland, where AI's impact is expected to be a prominent topic.

As AI becomes more integrated into workplaces, it is anticipated to have both positive and negative effects on the workforce. The IMF chief pointed out that the effects would be more profound in advanced economies compared to emerging markets, with white-collar workers at a higher risk than manual laborers.

In developed economies, up to 60% of jobs could be influenced by AI, with approximately half benefiting from increased productivity. However, the other half might face challenges as AI takes over tasks currently performed by humans, potentially leading to reduced labor demand, lower wages, and diminished hiring. In extreme cases, certain jobs may disappear entirely.

In emerging markets and low-income nations, 40% and 26% of jobs, respectively, are expected to be affected by AI. Georgieva emphasized that many of these countries lack the necessary infrastructure or skilled workforce to harness the benefits of AI, raising the risk that the technology could worsen existing inequalities.

She cautioned that the use of AI could increase the likelihood of social unrest, especially if younger and less experienced workers embrace the technology to enhance their productivity, while older, more seasoned workers struggle to adapt.