IMF says AI will hit 40% of jobs and worsen inequality

Artificial intelligence is poised to impact nearly 40% of all jobs, as indicated by a recent analysis conducted by the International Monetary Fund (IMF).

IMF’s managing director, Kristalina Georgieva, emphasized that “in most scenarios, AI will likely worsen overall inequality.” Addressing this concern, she urged policymakers to confront this “troubling trend” and take measures to “prevent the technology from further stoking social tensions.”

The spotlight on the benefits and risks of AI has intensified due to its proliferation. According to the IMF, AI is expected to influence a higher percentage of jobs, estimated at around 60%, in advanced economies. In half of these instances, workers stand to gain from the integration of AI, enhancing their productivity.

However, AI’s potential to handle key tasks currently performed by humans raises concerns. This capability could diminish the demand for labor, impacting wages, and potentially leading to job losses.

In contrast, the IMF projects that only 26% of jobs in low-income countries will be affected by AI. Ms. Georgieva emphasized that “many of these countries lack the infrastructure or skilled workforces to harness the benefits of AI, raising the risk that over time, the technology could worsen inequality among nations.”

The IMF believes that lower-income and older workers may be particularly vulnerable to falling behind in the wake of AI advancements. Ms. Georgieva stressed the importance of countries establishing comprehensive social safety nets and implementing retraining programs for vulnerable workers. She stated, “In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality.”