Deployment of AI likely to impact 40% of global workforce – IMF predicts

The deployment of Artificial Intelligence (AI) is anticipated to impact some 40 percent of the global workforce in the coming years.

According to an International Monetary Fund (IMF) study, despite AI enhancing productivity in some key sectors of economies, its continuous deployment is likely to render many individuals jobless in the coming years.

Managing Director of the Fund, Kristalina Georgieva addressing journalists on the sidelines 2024 IMF-World Bank Spring meetings in Washington DC, USA emphasized that AI has come to stay hence we have to get used to it and adapt.

“A recent IMF study shows that artificial intelligence could affect up to 40 percent of jobs across the world and 60 percent in advanced economies.

“It could enhance workers’ productivity but also threaten some jobs. Investing in digital infrastructure and skills, as well as in strong social safety nets will determine the pace of AI adoption and its impact on productivity.” Georgieva said.

Earlier in January this year, the IMF projected that AI could also affect the income and wealth inequality within countries.

It explained that, “We may see polarization within income brackets, with workers who can harness AI seeing an increase in their productivity and wages—and those who cannot falling behind. Research shows that AI can help less experienced workers enhance their productivity more quickly. Younger workers may find it easier to exploit opportunities, while older workers could struggle to adapt.

“The effect on labour income will largely depend on the extent to which AI will complement high-income workers. If AI significantly complements higher-income workers, it may lead to a disproportionate increase in their labour income.

"Moreover, gains in productivity from firms that adopt AI will likely boost capital returns, which may also favour high earners. Both of these phenomena could exacerbate inequality,” the IMF noted.

“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.

"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,” it continued.

MA/SARA