Around the globe, almost 40% of jobs could face the impact of the growing presence of artificial intelligence (AI), potentially exacerbating inequality, warns the International Monetary Fund (IMF). IMF chief Kristalina Georgieva, in a recent blog post, urged governments to establish social safety nets and implement retraining programs to address the potential negative effects of AI. Georgieva emphasized the likelihood of AI worsening overall inequality and urged proactive measures by policymakers to prevent the technology from exacerbating social tensions.
The concerns were raised ahead of the annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, where AI-related topics are expected to take center stage. Davos was already adorned with AI advertisements and branding as the summit commenced, with industry leaders like Sam Altman, CEO of ChatGPT-maker OpenAI, and Microsoft CEO Satya Nadella scheduled to speak at the event.
Georgieva highlighted that as AI becomes more prevalent in the workforce, it is anticipated to both benefit and pose challenges to human workers. The IMF’s analysis suggests that the impact of AI will be more profound in advanced economies, particularly affecting white-collar workers more than manual laborers. In these economies, up to 60% of jobs could be influenced by AI, with approximately half of them potentially benefiting from increased productivity. However, the other half may face challenges as AI applications replace tasks currently performed by humans, potentially leading to lower wages reduced hiring, and in extreme cases, job loss.
In emerging markets and lower-income nations, the impact is expected to be felt less intensely, with 40% and 26% of jobs, respectively, likely to be affected by AI. Georgieva emphasized that many of these countries lack the necessary infrastructure and skilled workforces to harness the benefits of AI, raising the risk of increased inequality over time.
Georgieva warned of the potential for social unrest, especially if younger, less experienced workers leverage AI to boost their productivity while more senior workers struggle to adapt. The IMF chief concluded that AI could heighten the risk of social inequality, making it imperative for governments and organizations to address these challenges proactively.
Last year, AI took the spotlight at the WEF in Davos, particularly with the rise of ChatGPT. This generative AI-powered chatbot sparked discussions about its potential to reshape global work dynamics by performing tasks such as writing essays, speeches, and poems. Since then, advancements in AI technology have further integrated chatbots and AI systems into mainstream usage, prompting substantial investments. Despite concerns about potential job displacement, estimates are suggesting that widespread AI adoption could increase labor productivity and contribute to a 7% annual boost in global GDP over 10 years, according to Goldman Sachs economists in March 2023.
