AI Could Impact 40% Of Global Jobs, IMF Warns: 'Will Likely Worsen Overall Inequality'

In a startling revelation, the International Monetary Fund (IMF) has predicted that artificial intelligence (AI) will have a significant influence on nearly 40% of jobs worldwide, with advanced economies expected to bear the brunt of this impact.

What Happened: A recent Bloomberg report outlines the IMF’s analysis, which suggests that advanced economies could see up to 60% of jobs influenced by AI, a more severe effect compared to emerging markets and low-income countries.

The IMF’s Managing Director, Kristalina Georgieva, warned that AI could potentially increase income inequality, depending on how it benefits high earners. Georgieva urged policymakers to mitigate this disturbing trend and prevent AI from heightening social tensions.

"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."

Georgieva also highlighted the need for countries to establish extensive social safety nets and retraining programs for at-risk workers. She believes that while AI could completely replace some jobs, it is more likely to enhance human work.

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Why It Matters: The IMF’s announcement coincides with the World Economic Forum in Davos, where AI’s impact is a key discussion point. Companies like Buzzfeed Inc BZFD are significantly investing in AI, leading to employee concerns about job security.

While the European Union is advancing with AI safeguard legislation, the U.S. is still determining its federal regulatory approach.

The IMF’s forecast aligns with recent trends in the tech industry. A report from November highlighted how tech giants like Microsoft Corp MSFT, Alphabet Inc GOOGL GOOG, and Meta Platforms Inc META are scaling back their workforce, emphasizing cost control and AI, despite business growth.

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