IMF: AI may replace 300M jobs, worsen inequality
WASHINGTON D.C., UNITED STATES — Artificial intelligence (AI) is set to profoundly impact the future of work, according to a new analysis by the International Monetary Fund (IMF).
The IMF report reveals that AI exposure will be around 40% globally, with 60% of jobs affected in advanced economies.
On the other hand, the IMF projects fewer immediate disruptions, with the technology set to affect 40% of jobs in emerging markets and just 26% of jobs in low-income countries.
However, it may also displace human workers by automating key tasks, potentially leading to job losses and worsened inequality.
Goldman Sachs predicts AI advancements could jeopardize 300 million jobs globally due to automation, but many believe human labor will still be necessary for many roles.
“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 among nations,” said IMF Managing Director Kristalina Georgieva.
This gap could worsen cross-country income disparities over time if unaddressed.
The AI era is upon us & it's still within our power to ensure it brings prosperity for all. At #wef24, I'll share new IMF staff research on the potential impact of AI on the global economy & why we need policies to protect people & maintain social cohesion https://t.co/nx4obf0HKQ pic.twitter.com/0485MQ6HIx
— Kristalina Georgieva (@KGeorgieva) January 15, 2024
Within countries, younger and more educated workers are better positioned to exploit AI tools. However, older employees may struggle adapting to the changes.
If higher-income roles see the most complementarity from AI integration, labor income inequality could rise further.
To address this, Georgieva advised countries to establish comprehensive social safety nets and offer retraining programs for vulnerable workers through IMF’s AI Preparedness Index.
The index measures readiness in areas such as digital infrastructure, human-capital and labor-market policies, among others.
