This development, while offering benefits in many cases, also raises concerns about increasing inequality.
IMF Managing Director Kristalina Georgieva highlighted the necessity for policymakers to address this "disturbing trend" to avoid exacerbating social tensions through technological advancements. The IMF's findings indicate that about 60% of jobs in advanced economies and 26% in low-income countries could be affected by AI.
The integration of AI into the workforce is a double-edged sword. While it can enhance productivity and efficiency in half of the cases, it also has the potential to
replace human tasks in the remaining scenarios, thereby reducing the demand for labor. Georgieva pointed out that many countries lack the necessary infrastructure and skilled workforce to fully leverage AI, potentially widening the gap between nations.
To address these challenges, Georgieva stressed the importance of establishing comprehensive social protection systems and providing retraining programs for vulnerable workers. This approach aims to ensure a more inclusive transition to AI-driven economies.
This report comes at a time when the EU has agreed on the first legislative rules globally to regulate AI in all life aspects, underscoring the growing significance of AI in various sectors. Examples include AI's application in a Dutch hospital for patient
queries and a robot chemist utilizing AI for scientific research. However, the rise of AI also raises legal concerns, as evidenced by The New York Times' lawsuit against OpenAI and Microsoft for copyright infringement.
In summary, the IMF report underscores the transformative impact of AI on the global job market and the critical need for proactive measures to mitigate inequality and ensure an inclusive transition.
