IMF claims AI will eliminate 40% of employment and increase inequality.

A report released today by the International Monetary Fund (IMF) projects that artificial intelligence would have an impact on about forty percent of all occupations.

The IMF’s managing director, Kristalina Georgieva, predicts that in most cases, artificial intelligence would make inequality worse overall.

Policymakers should address this “troubling trend,” according to Ms. Georgieva, to “prevent the technology from further stoking social tensions.”

The growing acceptance of AI has brought attention to both its benefits and drawbacks.

According to the IMF, advanced economies are projected to see a higher percentage of jobs—roughly 60%—affected by AI. For the most part, workers may anticipate increased productivity as a result of the integration of AI.

In other cases, AI will be able to carry out important jobs that people presently do. This may result in a decrease in the need for labor, which would have an impact on salaries or possibly lead to the elimination of employment.

However, according to IMF projections, the technology will only impact 26% of occupations in low-income nations.

It is consistent with a 2023 Goldman Sachs analysis that predicted AI may replace 300 million full-time jobs, but it also suggested that increased productivity might lead to the creation of new employment.

According to Georgieva, “many of these countries don’t have the infrastructure or skilled workforces to harness the benefits of AI, raising the risk that over time the technology could worsen inequality among nations”.

In general, younger and wealthier workers can see a disproportionate pay boost as a result of AI adoption.

According to the IMF, older and lower-income workers may lag.

According to Ms. Georgieva, nations must create extensive social safety nets and provide retraining opportunities for people who are at risk. By doing this, we can reduce inequality and safeguard livelihoods while making the AI transition more inclusive.

As world leaders in business and politics convene in Davos, Switzerland for the World Economic Forum, the IMF has released its findings.

Talk about AI has increased after the release of ChatGPT and other similar apps.

Globally, there is more legislation about technology. The world’s first comprehensive regulations regulating the use of artificial intelligence were tentatively agreed upon last month by authorities from the European Union.

Some of the first national AI legislation in the world, including guidelines for the creation and use of algorithms, have been implemented in China.

President Biden issued an executive order in October requiring companies to provide the US government with safety data related to AI.

The UK organized an AI Safety Summit the next month when several nations signed a declaration on the safe development of the technology.