HomeTechnologyIMF: AI Could Affect Jobs, Inequality, And Social Unrest

IMF: AI Could Affect Jobs, Inequality, And Social Unrest

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The International Monetary Fund (IMF) has warned that artificial intelligence (AI) will “likely worsen overall inequality” in a troubling trend that policymakers must address.

In a new analysis, IMF staff looked at the potential impact of AI on the global labour market. According to the report, AI will have an impact on high-skilled jobs, and as a result, advanced economies are poised to face the greatest risks from AI, with AI affecting approximately 60% of jobs in advanced economies.

Approximately half of the jobs exposed to AI will be enhanced by the technology, while the other half may reduce labour demand and lead to lower wages. According to the IMF, in extreme cases, some jobs will disappear completely.

AI exposure will be 40% in emerging markets, and 26% in low-income countries. The IMF believes that as a result, these economies will experience fewer disruptions from AI. However, many of these countries may be unable to capitalise on the opportunities presented by AI due to a lack of necessary infrastructure or skilled labour. This could exacerbate global economic inequality.

“It is critical for countries to establish comprehensive social safety nets and provide retraining opportunities for vulnerable workers. “We can make the AI transition more inclusive by protecting livelihoods and reducing inequality”

– The International Monetary Fund

According to the IMF, older workers and those who refuse to embrace AI will be more vulnerable than younger workers to the negative effects of AI in the workplace. Furthermore, for firms that already have access to AI, capital returns will benefit those who are already high earners, “exacerbate” inequality, according to the IMF.

The IMF is urging lawmakers in both advanced and developing countries to start developing policies to help regulate AI so that the benefits of this technology can be enjoyed and distributed responsibly. According to their blog post, the agency has already created an AI Preparedness Index, which “measures readiness in areas such as digital infrastructure, human capital and labor-market policies, innovation and economic integration, and regulation and ethics.”

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