AI may impact 40% of jobs around globe – IMF chief

Artificial Intelligence (AI) will affect around 40 per cent of jobs around the world, “replacing some and complementing others,” said IMF Chief, Kristalina Georgieva.

“We are on the brink of a technological revolution that could jumpstart productivity, boost global growth, and raise incomes around the world. Yet it could also replace jobs and deepen inequality,” she explained.

She also said that the rapid advancement of AI has caused both excitement and alarm around the world.

Georgieva added that the IMF needed to come up with policies to “safely leverage the vast potential of AI for the benefit of humanity.”

Advanced economies are the target to greater risks from the advancement of AI in comparison to the emerging markets and the developing countries.

However, they also see more opportunities to leverage AI benefits, than the emerging and developing countries.

The IMF’s report adds that AI has the ability to execute key tasks which are currently performed by humans. This can lead to low labour demand, low pay, and reduced hiring. In extreme cases, some jobs might even disappear.

The report says that in developed countries, around 60 per cent of jobs may be impacted by AI, while in low-income countries, AI exposure is 26 per cent.

This shows that these countries will face fewer immediate disruptions from AI than the developed countries. However, it also poses a threat of inequality among nations due to the technology in some countries.

Georgieva also said that there were opportunities to boost output and incomes around the world using AI.

“AI will transform the global economy,” she wrote.

“Let’s make sure it benefits humanity,” she added, ending her blog by saying that the AI era is “upon us,” and that people still have the power to make sure it brings prosperity.