Artificial intelligence (AI) is set to revolutionize the global job market, potentially affecting 40% of jobs worldwide, warns the head of the International Monetary Fund (IMF). While AI on Jobs can enhance productivity for some, the IMF emphasizes the need for social safety nets to protect vulnerable workers from the negative impacts of this technological shift.
Global Job Market at Risk
The IMF’s analysis reveals that advanced economies, including the US and the UK, are particularly exposed to AI-related disruptions. Approximately 60% of jobs in these economies are susceptible to AI, with half of them facing potential negative consequences. The technology, however, is expected to positively impact jobs that complement AI, such as those involving high responsibility and human interaction, like surgeons, lawyers, and judges.
High and Low Exposure Occupations
Jobs with “high complementarity” to AI are deemed safer, where the technology assists rather than displaces human work. On the other hand, jobs with “low complementarity,” like telemarketing, are at higher risk of being replaced by AI. Occupations with low exposure, such as dishwashers and performers, face minimal impact, according to the IMF.
Global Disparities in AI on Jobs Exposure
In emerging market economies, encompassing countries like China, Brazil, and India, AI job exposure is at 40%, while low-income countries face a 26% exposure. The overall global exposure stands at just under 40%. The rise of generative AI, capable of producing realistic text, images, and voice from simple prompts, is contributing to the increasing prominence of AI in various sectors.
Worsening Inequality and Need for Social Safety Nets
IMF Managing Director Kristalina Georgieva warns that AI could exacerbate global inequality, particularly in advanced economies. In cases where jobs disappear, lower labour demand may lead to reduced wages and hiring. Georgieva stresses the importance of comprehensive social safety nets and retraining programs to make the AI transition more inclusive, protecting livelihoods and curbing inequality.
AI on Jobs and Income Disparities
The IMF report indicates that higher-wage earners with jobs that complement AI can expect an increase in income, contributing to a rise in inequality. Choices regarding AI property rights and fiscal policies will play a crucial role in shaping its impact on income and wealth distribution. The report suggests that while the UK’s high proportion of graduates may aid in job transitions, older workers could face challenges in adapting to new roles.
As discussions on AI intensify at the World Economic Forum in Davos, industry leaders, including Microsoft CEO Satya Nadella, highlight the importance of shaping the future job landscape. Nadella emphasizes that AI can assist with mid-career transitions, making expertise more accessible. The evolving role of AI in the workforce raises questions about the nature of future jobs and the imperative for individuals to adapt to this technological shift.
Read about candidates supporting Taiwan’s Independence winning the Presidential Elections in 2024.
