AI will impact 40% of jobs around the world, warns IMF

15 January 2024 , 12:43

596     0

A futuristic light sign generated by artificial intelligence (Image: No credit)

The International Monetary Fund (IMF) has warned that artificial intelligence (AI) could impact 40% of jobs worldwide.

The IMF suggests the effect will be more significant in advanced economies, with around 60% of roles affected. About half of these workers will benefit from AI integration, which could boost productivity.

However, the rest might face lower wages, reduced hiring and, "in the most extreme cases, some of these jobs may disappear", according to the IMF. In a new report on AI and machine learning, the IMF said the technology could increase inequality between nations and within society.

Kristalina Georgieva, the IMF's managing director, said: "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 added that AI is unusual because it can also affect well-paid jobs: "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."

Brexit geniuses stay silent as we lose out by £100bn per year

The IMF is worried that advanced economies can adopt AI more quickly and harness its benefits more than developing nations. It also raised concerns about the impact within societies and communities.

The report warns that AI might be tough for older workers to get used to. Ms Georgieva said: "In most scenarios, AI will likely worsen overall inequality, a troubling trend that policymakers must proactively address to prevent the technology from further stoking social tensions. It is crucial for countries to establish comprehensive social safety nets and offer retraining programmes for vulnerable workers."

The study shows rich places like Singapore, the US and Denmark are ready for AI. This news comes as big bosses meet in Davos, Switzerland, to talk about AI and other big world issues.

* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]

Lawrence Matheson