IMF Warns AI Will Affect Jobs And Deepen The Inequality

The IMF issued a warning, stating that the development of artificial intelligence may impact over 40% of jobs worldwide, with high-income economies being more vulnerable than developing markets and low-income nations.

IMF chief Kristalina Georgieva urged policymakers to tackle this “troubling trend” and to proactively take steps “to prevent the technology from further stoking social tensions.”

The IMF noted that AI will affect a large share of jobs in high-income nations, and roughly half of these may benefit from AI integration to boost productivity.

“We are on the brink of a technological revolution that could jumpstart productivity, boost global growth and raise incomes around the world. Yet it could also replace jobs and deepen inequality,” Georgieva said.

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The results imply that low-income and developing market nations will be less affected by AI in the near future. The IMF points out that many of these countries lack the trained labour infrastructure necessary to take advantage of AI’s immediate benefits, which increases the possibility that the technology may exacerbate inequality.

The IMF also raised the concern of “polarisation within income brackets,” highlighting how AI may impact wealth and income disparity within nations.

It said that although individuals who are unable to take use of AI’s advantages could see a decline in productivity and pay, those who can could see a rise in both.