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Artificial intelligence (AI) is predicted to have a major impact on about 60% of the jobs in advanced economies, the International Monetary Fund (IMF) has said.
In a new report, the body warned that the burgeoning technology will “profoundly change” the global economy, likening it to a new industrial revolution.
While AI brings promises of increased productivity in many roles, in will also have negative impacts on around 30% of all jobs in advanced economies as humans are replaced in some cases. But these economies are also poised to take the most advantage from AI, with enhanced productivity in many sectors.
Meanwhile, emerging market economies have a lower exposure to the technology, with around 40% of job roles impacted, while the figure is just 26% in low-income countries.
The IMF warns that the inability for lower income countries to take advantage of AI could further exacerbate inequalities around the digital divide, as well as income disparity.
“Unlike previous waves of automation, which had the strongest effect on middle-skilled workers, AI displacement risks extending to higher-wage earners,” the report said.
Nevertheless, workers on higher incomes are also more likely to benefit from AI, a dynamic that could further exacerbate global wealth inequality. College-educated workers in particular are better prepared to move from jobs at risk of displacement to different roles made more efficient by AI.
Younger workers who are adaptable and familiar with new technologies may also be better able to leverage the new opportunities afforded by AI, whereas older workers may struggle with re-employment.
The IMF recommends expanding social safety nets for impacted workers, as well as implementing retraining schemes.
“The exact implications of AI for economies and societies are challenging to predict, embodying a level of uncertainty reminiscent of past introductions of general-purpose technologies, such as electricity,” the report states.
“Women and highly educated workers are consistently more exposed to, but also more likely to benefit from, AI; older workers may be more likely to struggle during this technological transition.”
A McKinsey & Company report from last year warned that a third of US working hours could be automated by 2030. President Joe Biden later implemented an executive order that establishes new safety standards for the development and use of AI tools.
