Artificial Intelligence
Will artificial intelligence take your job?
The revolutionary technology can increase productivity, boost economic growth, and lift incomes. But it may also threaten employment and widen inequality. The likely effects of AI on the global economy, as well as our lives and livelihoods, are cause for both excitement and concern. Let’s start with how it’s reshaping work.
IMF research shows that almost 40% of jobs worldwide could be affected by AI. In advanced economies, this share rises to 60%, posing both opportunities and risks. In some scenarios, jobs may evolve even vanish, as AI takes on tasks traditionally performed by humans. For example, AI-powered chat bots and virtual assistants can already handle many customer service inquiries.
The bright side is that AI can also complement worker skills – enhancing productivity and opening up new opportunities. AI-powered algorithms can analyze medical images with precision, assisting doctors in making quicker, more accurate diagnoses. New jobs and even new industries may also arise. In most emerging markets and low-income countries, there is a smaller share of high-skilled jobs than in advanced economies. So, they will likely be less affected and will face fewer immediate disruptions from AI.
At the same time, many of these countries don’t have the infrastructure or skilled workforces needed to harness the benefits of AI. This could worsen inequality among nations.
AI could also affect income and wealth inequality within countries. Workers who can harness AI may see pay gains or greater productivity, while those who can’t may fall behind. Younger workers may find it easier to exploit opportunities, while older workers could struggle to adapt.
In most scenarios, AI will likely worsen overall inequality, a troubling trend that policymakers must prevent.
The key question, then, is how can we ensure that these rapid gains in AI benefit everyone?
To help countries craft the right policies, the IMF has developed an ‘AI Preparedness Index’ that measures readiness in areas like digital infrastructure, human-capital and labor-market policies, innovation, and regulation. It shows that wealthier economies – like Singapore, the US, and Denmark – tend to be better equipped for AI adoption than low-income countries.
Advanced economies should expand social safety nets, invest in training workers, and prioritize AI innovation and integration. They also need to strengthen regulation to protect people from excessive risks and abuses, and build trust in these technologies.
Emerging markets and developing economies should lay a strong foundation by investing in digital infrastructure and digital training for workers.
Together, we can navigate this revolution with foresight and humanity, ensuring a prosperous, inclusive future for generations to come.
