Act Now or Fall Behind: IMF Warns 40% of Jobs at AI Risk

  • Editor
  • January 16, 2024
    Updated
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The major financial agency of IMF, International Monetary Fund (IMF) has highlighted the extensive influence of artificial intelligence (AI) on the global job market, with an estimated 40% of jobs worldwide poised to be impacted. This significant revelation, shared by IMF Managing Director Kristalina Georgieva, underscores the dual nature of AI’s impact: while it presents vast opportunities for productivity and growth, it also poses challenges to job security and economic equality.

“Your job may disappear altogether—not good—or artificial intelligence may enhance your job, so you actually will be more productive, and your income level may go up,” Georgieva said. She added, “We must focus on helping low-income countries, in particular, to move faster to be able to catch the opportunities that artificial intelligence will present.”

According to the IMF’s analysis, the impact of AI will be more pronounced in advanced economies, where as much as 60% of jobs may be influenced. This shift is expected to be a double-edged sword. On one hand, approximately half of these jobs could experience enhanced productivity and efficiency due to AI integration, leading to potential wage increases and economic growth. On the other hand, the remaining half faces risks such as reduced labor demand, decreased wages, and in extreme cases, job elimination.

In contrast, emerging markets and low-income countries are expected to witness a lower impact, with AI affecting 40% and 26% of jobs, respectively. However, these regions face unique challenges, lacking the necessary infrastructure or skilled workforce to fully capitalize on AI’s benefits. This raises concerns about widening global inequality, as developed countries might accelerate ahead in AI adoption and economic gains.

Highlighting the potential for AI to create a polarization within income brackets, Georgieva noted that higher-income and younger workers might benefit disproportionately from AI adoption, experiencing wage increases and productivity boosts. Conversely, lower-income and older workers could fall behind, struggling to adapt to the rapidly evolving job market, which will give rise to the inequality.

Kristalina Georgieva 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,”

However, the IMF perspective on AI changing the job market, leaves the internet divided.

There are few who think that AI will never take over their job roles:

AI will take jobs of 60%

On the other hand, some believe that AI will inevitably take over various job markets, if not now, then certainly in the future!Ai will take jobs of 60% in future

And then there are some who think that the revolution of AI will give birth to a new marketplace.

 

The IMF underscores the need for comprehensive social safety nets and retraining programs to make the AI transition more inclusive and equitable. This approach aims to protect livelihoods, curb inequality, and ensure that the benefits of AI are broadly shared across different sectors and demographics.

Head over to our news section for more AI news and insights. 

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Dave Andre

Editor

Digital marketing enthusiast by day, nature wanderer by dusk. Dave Andre blends two decades of AI and SaaS expertise into impactful strategies for SMEs. His weekends? Lost in books on tech trends and rejuvenating on scenic trails.

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