The International Monetary Fund (IMF) has sounded an alarm, indicating that nearly 40% of global employment could be endangered by the burgeoning influence of artificial intelligence (AI). This stark warning, reported by CNN, underscores the seismic shifts anticipated in the global job market.
IMF Chief Kristalina Georgieva, in a recent blog post, stressed the critical necessity for governments worldwide to fortify social safety nets and roll out comprehensive retraining programmes. This proactive approach aims to mitigate AI's potentially dramatic effects on employment.
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Highlighting a key concern, Georgieva pointed out the potential for AI adoption to aggravate existing inequalities, a trend that requires immediate policy intervention to avert escalating social tensions. This issue is set to be a central theme at the upcoming annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, where AI's role in the economy will be a focal point.
According to the IMF's analysis, advanced economies might witness the most significant impact, with up to 60% of jobs at risk. Although AI promises to enhance productivity in about half of these roles, the remainder faces a stark reality of diminishing demand, lowered wages, and potential unemployment as AI assumes roles traditionally held by humans.
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Emerging markets and lower-income countries are not immune to these challenges. Here, 40% and 26% of jobs, respectively, may feel the impact. Georgieva raised concerns about these regions' lack of infrastructure and skilled workforces, factors that intensify the risk of AI deepening existing economic divides.
Georgieva also warned of an escalating risk of social unrest, especially if younger, tech-savvy workers leverage AI for productivity gains, leaving their older counterparts struggling to adapt.
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At Davos, the implications of AI on employment are a key discussion topic. Prominent figures, including Sam Altman, CEO of ChatGPT-maker OpenAI, and Microsoft's Satya Nadella, are slated to address the impact of generative AI technologies.
Despite these challenges, Georgieva did not overlook AI's positive potentials, noting its capacity to significantly boost global output and incomes. She argued that with thoughtful planning, AI could be a transformative force for the global economy, stressing the importance of channeling its benefits for the collective good.
Amidst concerns over job displacement, some economists are optimistic, suggesting that AI's widespread adoption may ultimately enhance labor productivity. This could potentially lead to a 7% annual increase in global GDP over the next decade.