Artificial Intelligence Impacting 40% of global jobs, finds IMF analysis

An analysis by the International Monetary Fund (IMF) has found that close to 40 percent of worldwide will be affected by artificial intelligence (AI), with advanced economies facing more exposure than emerging markets and low income countries, as per a Bloomberg report. Kristalina Georgieva, Managing Director of the IMF expressed concerns in a blog post, stating that in most scenarios, is likely to worsen overall inequality.

This troubling trend, she suggests, requires proactive measures from policymakers to prevent the technology from exacerbating social tensions. Also Read | Georgieva emphasised that the impact of AI on income inequality will depend on how much the technology complements high earners. Increased productivity from high income workers and companies could widen the wealth gap, she noted.

To address this, countries are advised to establish "comprehensive social safety nets" and implement retraining programs for vulnerable workers. AI Job Impact Scenarios The analysis suggests that while there is potential for AI to fully replace some jobs, the more likely scenario is its complementarity with human work.

Advanced economies are expected to see around 60 percent of jobs affected, surpassing the impact on emerging and low income countries. Also Read | Georgieva's insights on AI coincide with discussions among global business and political leaders at the World Economic Forum in Davos, Switzerland, where AI is a prominent topic.

Companies, including Buzzfeed Inc., have been investing heavily in AI, raising concerns among employees about the future of their roles. Buzzfeed, for instance, announced plans to use AI for content creation, leading to the closure of its core news department and the layoff of over 100 staff members.

Also Read | In December, the European Union reached a tentative deal on legislation to establish safeguards for AI. Meanwhile, the United States is still evaluating its federal regulatory stance on artificial intelligence. Livemint tops charts as the fastest growing news website in the world to know more.

Unlock a world of Benefits! From insightful newsletters to real time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away!.