Big Changes Coming: AI Could Affect Almost Half of Jobs Worldwide, IMF Speaks out

The International Monetary Fund (IMF) suggests that nearly 40% of jobs worldwide may be impacted by the increasing use of artificial intelligence (AI). This could potentially worsen the existing inequality gap.

In a blog post on a Sunday, the head of the International Monetary Fund (IMF), Kristalina Georgieva, suggested that governments should create safety nets and training programs to help people cope with the effects of artificial intelligence (AI).

She emphasized the importance of having support systems in place to assist individuals who may be affected by changes brought about by AI. Georgieva also highlighted the need for retraining programs, which could help people acquire new skills and adapt to the evolving job market.

In simpler terms, she basically said that governments should make sure there are safety nets to help people when AI changes things, and they should also provide programs to teach new skills so that everyone can keep up with the changes happening in jobs.

“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,” she expressed before the yearly gathering of the World Economic Forum (WEF) in Davos, Switzerland, where this matter is expected to be a major focus. It is crucial for decision-makers to address this potential consequence of AI to ensure fair and equitable outcomes for all. 

Davos, the ski resort town, was already filled with AI advertisements and branding as the summit began on Monday.

Sam Altman, who serves as the CEO of OpenAI, the company behind ChatGPT, along with his major supporter, Microsoft CEO Satya Nadella, are scheduled to address the audience at an upcoming event later this week. Their participation is part of a comprehensive program, featuring a Tuesday debate on the topic “Generative AI: Steam Engine of the Fourth Industrial Revolution?”

As AI becomes more commonly used by workers and businesses, its impact is anticipated to have both positive and negative effects on the human workforce, as mentioned by Georgieva in her blog.

Reiterating concerns expressed by other experts, Georgieva pointed out that the repercussions are likely to be more profound in advanced economies compared to emerging markets. This is attributed, in part, to the perception that employees in white-collar roles are more vulnerable than those in manual labor positions. In simpler terms, the influence of AI is expected to be greater in developed countries, especially affecting office-based jobs more than manual, hands-on work.

Goldman Sachs suggests that the recent surge in artificial intelligence (AI) could potentially impact around 300 million jobs

In advanced economies, like those in well-developed countries, around 60% of jobs might be influenced by artificial intelligence (AI). About half of these jobs could see improvements in productivity thanks to AI. However, for the other half, AI applications might take over essential tasks currently done by people, potentially leading to a decrease in the demand for labor, resulting in lower wages and fewer job opportunities. In extreme cases, some jobs might even disappear altogether.

In less developed regions and countries with lower incomes, 40% and 26% of jobs, respectively, are expected to be impacted by AI. In places with emerging markets, such as India and Brazil, and in low-income nations like Burundi and Sierra Leone, the use of AI could pose challenges. Many of these countries lack the necessary infrastructure and skilled workforce to fully benefit from AI, raising concerns that the technology might worsen existing inequalities.

IMF Managing Director Kristalina Georgieva cautioned that AI could potentially lead to increased social unrest, especially if younger and less experienced workers embrace the technology to enhance their productivity, while older workers struggle to adapt. The risk of inequality deepening over time is a significant concern, and Georgieva emphasized the importance of addressing these challenges to ensure a more balanced and inclusive adoption of AI across different economies.

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AI became a major focus at the World Economic Forum (WEF) in Davos last year, thanks to the widespread popularity of ChatGPT. This chatbot sensation, driven by generative AI, triggered discussions on its potential to revolutionize global work dynamics. Its capability to compose essays, speeches, poems, and more fueled conversations about how it could reshape the way people work worldwide.

Following the Davos spotlight, advancements in the technology have broadened the application of AI chatbots and systems. These developments have propelled them into mainstream use, attracting substantial investment in the process.

Certain technology companies have openly stated that they are reconsidering their workforce sizes due to the impact of AI. Although there may be changes in the job landscape, the widespread integration of AI is predicted to enhance labor productivity and potentially increase global GDP by 7% annually over the next decade, as estimated by economists at Goldman Sachs in March 2023. 

In a blog post, Kristalina Georgieva also highlighted the potential of AI to create opportunities that can positively impact global output and incomes. She emphasized the transformative effect AI can have on the worldwide economy and called for ensuring that its benefits are directed towards the well-being of humanity.