IMF New Report- 60% of Jobs could be affected by AI

We’re on the brink of a tech revolution that could turbocharge productivity worldwide, but there’s a catch – it might replace jobs and widen the wealth gap.

Artificial Intelligence (AI) is racing ahead, sparking both excitement and concern. It’s set to shake up economies in unpredictable ways. The big question: how do we make sure AI benefits everyone?

Changing Job Scenery

According to a recent report by the International Monetary Fund (IMF), nearly 40% of jobs globally are in AI’s crosshairs.

This isn’t just about jobs being replaced; AI will team up with humans in many cases.

The impact? Advanced economies face more risks, but also more chances to harness AI’s benefits compared to emerging markets.

In advanced economies, around 60% of jobs could be affected by AI. Half of these might get a boost in productivity, while the other half could see tasks taken over by machines, potentially leading to lower wages and fewer jobs.

It’s a different story in emerging markets and low-income countries, where AI exposure is expected to be less immediate.

The Inequality Challenge with AI

AI could also stir the pot of inequality within countries. Some workers might see a rise in productivity and wages, while others could fall behind. Younger workers may have an easier time adapting than their older counterparts.

The bottom line? AI might make overall inequality worse, and policymakers need to step in. Countries must establish safety nets and retraining programs to make the AI transition inclusive, protecting jobs and fighting inequality.

AI Ready or Not

AI is rapidly becoming a part of businesses worldwide, emphasizing the need for policymakers to act swiftly.

The IMF has created an AI Preparedness Index to measure how ready countries are for AI adoption. Wealthier countries top the list, with Singapore, the United States, and Denmark leading the charge.

The message is clear: advanced economies should focus on innovation and integration, building strong regulatory frameworks.

For emerging markets, the priority is laying a solid foundation through investments in digital infrastructure and a digitally competent workforce.

The AI era is here, and it’s up to us to make sure it brings prosperity for all. The key? Balancing growth with fairness.

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