The International Monetary Fund (IMF) in a new analysis said nearly 40 percent of the global labor market is exposed to artificial intelligence (AI) — an impact most likely to be felt in high-skilled jobs and in advanced economies.
The analysis, which was released Sunday, examines the benefits and consequences of AI and explores how different labor sectors and economies are likely to feel the effects of the new technology.
In advanced economies, according to the analysis, about 60 percent of jobs are exposed to AI.
About half of those exposed will benefit from the enhanced productivity provided by AI integration, according to the analysis. The other half, however, could see core tasks they perform replaced by AI, leading to lower labor demand, lower wages and reduced hiring.
In emerging markets, 40 percent of jobs are expected to be exposed to AI, and 26 percent of jobs are expected to be exposed to AI in low-income countries.
While emerging markets and low-income countries are less likely to be exposed to AI than advanced economies, they also are less likely to harness the potential of AI when they are exposed, the IMF analysis found, likely worsening inequality.
AI is likely to exacerbate inequality in advanced economies too, according to the analysis. Those with access and know-how to harness AI’s potential could see a rise in their income and productivity, leaving other workers behind. This will lead to greater inequality even in advanced economies.
In a blog post about the new analysis, IMF Managing Director Kristalina Georgieva called on policymakers to prepare for the consequential effects that the “technological revolution” of AI is likely to bring to the global economy.
“In most scenarios, AI will likely worsen overall inequality, a troubling trend that policymakers must proactively address to prevent the technology from further stoking social tensions,” Georgieva wrote.
“It is crucial for countries to establish comprehensive social safety nets and offer retraining programs for vulnerable workers. In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality,” she added.