AI Impact on Jobs: 60% of Advanced Economies to Be Affected, says IMF
According to the International Monetary Fund (IMF), artificial intelligence (AI) is set to impact around 60% of jobs in advanced economies. IMF Managing Director, Kristalina Georgieva, made the statement ahead of her departure to the World Economic Forum in Davos, Switzerland. The IMF report published on the topic reveals that AI will expose nearly 40% of global employment. Advanced economies in both the emerging markets and developing countries will see 60% and 26% of their jobs affected, respectively.
How AI Will Affect Jobs in Emerging Markets and Low-Income Countries
While the impact of AI is projected to be less severe in emerging markets and low-income countries initially, the report suggests that these regions will be less likely to benefit from the advantages of the new technology. The IMF warns that this could worsen the digital divide and income disparity between countries. Additionally, the report highlights that older workers are expected to be more vulnerable to job displacement brought about by AI.
The Positive and Negative Effects of AI on Employment
The IMF report indicates that about half of the jobs impacted by AI will be negatively affected. This means that some jobs may disappear altogether. However, the other half of the affected jobs may benefit from increased productivity resulting from AI. Workers in these roles could see their income levels rise as a result of productivity gains associated with AI implementation. The report suggests that the impact of AI on employment will vary across different sectors.
Addressing Concerns: Policy Solutions for AI and Job Displacement
In light of the anticipated job displacement caused by AI, the IMF sees significant opportunities for policy prescriptions to mitigate the negative effects. Georgieva emphasized the need to focus on assisting low-income countries in moving faster to capitalize on the opportunities presented by AI. Policy measures could include providing support for workers to develop new skills and facilitating job transitions. Various policy responses may be necessary to address the impact of AI on different sectors and demographics.
Embracing the Opportunities: AI as a Tremendous Opportunity for Everyone
While AI may be seen as a source of concern, Georgieva asserts that it also presents significant opportunities for all. The IMF stresses the importance of embracing AI technology as it emerges. Georgieva encourages individuals and societies to adapt to the changes, emphasizing that AI has the potential to enhance job roles and increase productivity. She urges low-income countries, in particular, to capitalize on the possibilities AI offers rather than fearing its advancements. AI, therefore, should be viewed as a tremendous opportunity for economic growth and development.
Analyst comment
Positive news: AI presents significant opportunities for all, enhancing job roles and increasing productivity. Policy measures can mitigate negative effects, including support for workers to develop new skills and facilitating job transitions. AI should be viewed as a tremendous opportunity for economic growth and development.
