In a recent comprehensive analysis, the International Monetary Fund (IMF) sheds light on the extensive impact of artificial intelligence (AI), unveiling its potential to disrupt nearly 40 per cent of all jobs worldwide.
Kristalina Georgieva, the Managing Director of the IMF, expresses deep concerns about the consequences of widespread AI adoption, emphasising the likelihood of exacerbating existing inequalities.
Georgieva underlines the urgency for policymakers to address this alarming trend, cautioning that unchecked deployment of AI could further widen social disparities and intensify tensions.
The analysis indicates that the influence of AI on employment is expected to be particularly pronounced in advanced economies, with an estimated impact on approximately 60 per cent of jobs.
While in about half of these cases, employees are poised to benefit from AI integration by enhancing their productivity and work capabilities, in other instances, AI may assume critical roles traditionally performed by humans.
This shift in labour dynamics could lead to reduced demand for human workers, potentially affecting wages and, in some cases, resulting in job displacement.
Contrary to the more significant impact projected for advanced economies, the IMF’s projections suggest that low-income countries may experience a comparatively lower impact, with AI affecting only around 26 per cent of jobs in these regions.
Ms. Georgieva points out that many of these nations lack the necessary infrastructure or skilled workforces to harness the benefits of AI, raising concerns that the technology could exacerbate inequality among nations over time.
This analysis aligns with a 2023 report by Goldman Sachs, estimating that AI has the potential to replace the equivalent of 300 million full-time jobs.
However, the report also highlights the possibility of new job opportunities emerging along with a substantial increase in productivity.
As the rapid proliferation of AI continues to spark intense debate, the global community faces the critical challenge of balancing the benefits and risks associated with this transformative technology.