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Updated January 15th, 2024 at 18:58 IST

IMF Warns Nearly 40% of Global Jobs at Risk due to AI's Rise

IMF chief is urging governments to implement social safety nets and retraining programs to mitigate the adverse effects of AI on employment.

Reported by: Sagar Kar
IMF 
IMF | Image:www.imf.org
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The International Monetary Fund (IMF) has sounded the alarm, stating that the rise of artificial intelligence (AI) could potentially disrupt almost 40% of jobs worldwide, contributing to deepening inequality. 

According to a report from CNN news, in a blog post on Sunday, IMF chief Kristalina Georgieva urged governments to implement social safety nets and retraining programs to mitigate the adverse effects of AI on employment.

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AI will worsen inequality? 

"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 wrote ahead of the annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, where AI's impact is set to be a prominent topic of discussion.

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As the summit kicked off on Monday, the ski resort town of Davos was adorned with AI advertisements and branding, emphasizing the growing influence of technology in shaping the global economic landscape.

AI's impact a mixed bag?

Georgieva emphasized that the effects of AI adoption would be a mixed bag for the workforce, benefiting some while adversely affecting others. She noted that as AI becomes more integrated into various industries, both workers and businesses are likely to experience its dual impact.

Advanced economies more vulnerable?

The blog post echoed warnings from other experts and highlighted that the impact of AI is expected to be more profound in advanced economies than in emerging markets. One contributing factor is that white-collar workers are perceived to be more susceptible to displacement than manual laborers.

The call for urgent policy action underscores the need for governments to address the potential job displacement and inequality arising from the widespread adoption of AI. The IMF's warning serves as a crucial reminder for the international community to navigate the transformative impact of technology on employment with a focus on inclusivity and social support.

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Published January 15th, 2024 at 18:58 IST

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