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Artificial intelligence (AI) is poised to have a substantial impact on employment, particularly in advanced economies, according to a statement by the International Monetary Fund (IMF).
Globally, approximately 40% of jobs across all economies are exposed to the influence of AI, revealed the IMF in a blog post on Sunday (Jan. 14). In advanced economies, the impact could be even more pronounced, with around 60% of jobs at risk due to AI, given its potential to affect high-skilled positions.
While half of these jobs might benefit from AI integration, the other half faces the prospect of AI applications taking over tasks currently performed by humans. This could lead to reduced demand for labor, lower wages, and diminished hiring, and in some instances, entire jobs may vanish.
Emerging markets and low-income countries are expected to experience AI exposure rates of 40% and 26%, respectively. However, despite facing fewer immediate disruptions from AI, these economies may lack the necessary infrastructure and skilled workforces to fully harness its benefits. This raises concerns that AI could exacerbate inequality among nations over time.
AI also holds the potential to impact income and wealth inequality within countries, as workers proficient in utilizing AI may see increased productivity and wages. Conversely, those unable to adapt may fall behind. Research indicates that AI can help less experienced workers enhance their productivity more quickly, potentially benefiting younger workers, while older workers may find it challenging to adapt.
To address these challenges, the IMF has introduced an AI Preparedness Index, measuring readiness in areas such as digital infrastructure, human capital and labor-market policies, innovation and economic integration, and regulation and ethics. The organization recommends that advanced economies prioritize AI innovation and integration while developing robust regulatory frameworks. For emerging market and developing economies, the focus should be on establishing a strong foundation through investments in digital infrastructure and a digitally competent workforce.
A recent survey by ResumeBuilder revealed that among businesses using AI, 37% reported that the technology replaced workers in 2023, with 44% expecting further worker displacement in 2024.
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