In a prelude to the World Economic Forum in Davos, Switzerland, International Monetary Fund (IMF) Managing Director Kristalina Georgieva has issued a stark warning about the impending impact of artificial intelligence (AI) on global employment. According to Georgieva, 60% of jobs in advanced economies are expected to be affected by AI, a revelation drawn from an IMF report released on Sunday.
Speaking in an interview in Washington, Georgieva highlighted the nuanced impact across different economies. “Advanced economies, some emerging markets, are going to see 60 per cent of their jobs impacted,” she explained. The IMF report outlines a descending scale, with 40% job impact for emerging markets and 26% for low-income countries, revealing a potentially significant challenge for the global workforce.
The report underscores that almost 40% of the global employment landscape is exposed to AI. It anticipates that half of the jobs affected by AI will experience negative consequences, while the remaining half may witness increased productivity and improved income levels.
Georgieva emphasized the dual nature of AI’s influence on employment, stating, “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.”
While the immediate impact on emerging markets and developing economies is expected to be lower, the IMF report suggests they are also less likely to benefit significantly from the positive aspects of AI. This potential discrepancy could exacerbate existing digital divides and cross-country income disparities, raising concerns about equitable access to the benefits of AI technology.
The report also highlights that older workers may be more vulnerable to the changes ushered in by AI, emphasizing the need for targeted policies and support systems to mitigate the potential negative effects on this demographic.
As discussions on the role of AI in the global workforce continue to gain momentum, the IMF’s assessment underscores the urgency for policymakers and businesses to address the challenges and opportunities presented by artificial intelligence to ensure a balanced and inclusive future of work.
