IMF Warns: AI Could Disrupt 40% of Global Jobs
The International Monetary Fund (IMF) has raised significant concerns about the future of employment in the age of artificial intelligence (AI). According to the IMF, nearly 40% of jobs globally could be affected by the rise of AI, potentially deepening existing inequalities.
IMF chief Kristalina Georgieva emphasized the urgency of this issue in a Sunday blog post. She called upon governments worldwide to establish robust social safety nets and offer retraining programs to mitigate the impact of AI on the workforce. Georgieva's remarks come ahead of the World Economic Forum (WEF) in Davos, Switzerland, where AI's role in the economy is a key topic of discussion.
Davos, already adorned with AI-themed advertisements for the summit, is set to host debates and discussions featuring notable figures in the AI industry, including Sam Altman, CEO of ChatGPT-maker OpenAI, and Microsoft CEO Satya Nadella.
Georgieva pointed out that AI's integration into the workforce could both enhance and harm human labor. Advanced economies might experience a more significant impact, with up to 60% of jobs potentially affected. While AI can boost productivity, it also poses a risk to certain jobs, potentially leading to lower wages, reduced hiring, and even job disappearance in some cases.
The impact in emerging markets and lower-income countries, such as India, Brazil, Burundi, and Sierra Leone, is also concerning. Due to the lack of infrastructure and skilled workforces, these regions face the risk of worsening inequality due to AI. Approximately 40% of jobs in emerging markets and 26% in low-income countries could be affected.
Georgieva warned that AI's rapid advancement might trigger social unrest, especially if it disproportionately benefits younger, less experienced workers over their senior counterparts. The widespread use of AI, including in applications like ChatGPT, has sparked global discussions about its potential to reshape work.
Tech companies are already citing AI as a factor in staffing decisions. Despite the challenges, economists from Goldman Sachs estimate that AI adoption could increase global GDP by 7% annually over a decade, highlighting the technology's potential for boosting productivity and income.
Georgieva concluded her post by stressing the need for a thoughtful approach to AI integration, focusing on ensuring that it benefits humanity as a whole.