AI Will Affect 40% of Jobs Worldwide, says the IMF Managing Director

AI Will Affect 40% of Jobs Worldwide, says the IMF Managing Director
Photo Credit: Reuters

International Monetary Fund Managing Director Kristalina Georgieva said in a blog post that artificial intelligence will affect almost 40 percent of jobs around the world. In an analysis conducted by the IMF, it is revealed that about 60 percent of the jobs will be affected in advanced economies, 40 percent in emerging markets, and 26 percent in low-income countries. Kristalina Georgieva said that AI will increase the wealth gaps as returns to capital increase if it helps high-income workers more. She said, “In most scenarios, AI will likely worsen overall inequality, a troubling trend that policymakers must proactively address to prevent the technology from further stoking social tensions.”

Of the 60 percent of jobs that will be affected in advanced economies, half of them will be beneficial for the workers, as the AI integration will increase productivity. However, the other half will decrease the labor demand or reduce their wages as it will start performing the tasks that are prsently accomplished by humans. Meanwhile, she also talked about the 26 percent impact in low-income countries and said, “Many of these countries don’t have the infrastructure or skilled workforces to harness the benefits of AI, raising the risk that over time the technology could worsen inequality among nations.”

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The IMF believes that the higher-income workers and young workers will observe an increase in their income, while the lower-income workers and elderly workers will be left behind. The blog post also said, “It is crucial for countries to establish comprehensive social safety nets and offer retraining programs for vulnerable workers. In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality.

This analysis will affect the World Economic Forum held in Switzerland, from January 15 to January 19. It is expected to have a discussion on AI, as business and political leaders from all around the globe will participate in the meeting to discuss issues related to geopolitics, business, culture, and society.

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Shubhangi Srivastava

Shubhangi is a budding professional with a love for storytelling and an eye for detail. A journalism student and content enthusiast currently working at Tecuy Media. She is eager to bring freshness to the writing field and explore the world through her words.

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