The International Monetary Fund (IMF) in a recent analysis has disclosed that approximately 40% of worldwide jobs are under threat due to the influence of artificial intelligence (AI).
Analysis by the International lender stated that about 60% of jobs in advanced economies such as the US and UK are exposed to AI, and half of these jobs may be negatively affected. However, the technology will also help to enhance some humans’ productivity as AI improves their performance, it said.
Part of the IMF report reads,
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“Almost 40 percent of global employment is exposed to AI. Historically, automation and information technology have tended to affect routine tasks, but one of the things that sets AI apart is its ability to impact high-skilled jobs. In emerging markets and low-income countries, by contrast, AI exposure is expected to be 40 percent and 26 percent, respectively.
“These findings suggest emerging market and developing economies face fewer immediate disruptions from AI. At the same time, many of these countries don’t have the infrastructure or skilled workforces to harness the benefits of AI, raising the risk that over time the technology could worsen inequality among nations.
“As a result, advanced economies face greater risks from AI, but also more opportunities to leverage its benefits compared with emerging market and developing economies. In advanced economies, about 60 percent of jobs may be impacted by AI.”
The IMF further noted that roughly half the exposed jobs may benefit from AI integration, enhancing productivity. For the other half, AI applications may execute key tasks currently performed by humans, which could lower labor demand, leading to lower wages and reduced hiring. In the most extreme cases, some of these jobs may disappear.
Managing Director of the International Monetary Fund Kristalina Georgieva said that with the massive AI adoption, the world is currently 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 further noted that the commission will need to come up with a set of policies to safely leverage the vast potential of AI for the benefit of humanity. To help countries craft the right policies, the IMF has developed an AI Preparedness Index that measures readiness in areas such as digital infrastructure, human capital and labor-market policies, innovation and economic integration, and regulation and ethics.
IMF report is coming months after investment bank Goldman Sachs said generative AI could impact 300 million jobs. Also, four in 10 companies say artificial intelligence is likely to replace some employees in 2024.
While 44% of the companies surveyed last year, expected that AI would lead to layoffs in 2024, almost all of the businesses that plan to hire in 2024 say candidates will benefit from having AI skills.
However, to thrive in this current technological revolution, employees need to find ways to grow their skills and stay relevant in their field if they don’t want their jobs to be replaced with AI.