“We are on the brink of a technological revolution that could jumpstart productivity, boost global growth and raise incomes around the world,” IMF managing director Kristalina Georgieva said in a statement. “Yet it could also replace jobs and deepen inequality.”
The effects of AI are set to ripple throughout the global economy and have the power to reshape it entirely, the IMF said in its analysis of the technology’s impact on the global labor market. Around the world, 40% of all employment is affected in some way by AI, with the number rising to 60% in higher-income countries.
“Roughly half the exposed jobs may benefit from AI integration, enhancing productivity,” Georgieva wrote. “For the other half, AI applications may execute key tasks currently performed by humans, which could lower labor demand, leading to lower wages and reduced hiring. In the most extreme cases, some of these jobs may disappear.”
A gap may grow between those who utilize AI and those who don’t or cannot, the IMF found.
The speed with which businesses are integrating AI into their practices creates an urgent need for policy responses, Georgieva wrote.
The IMF report comes as more than 60 heads of state and government, plus hundreds of business leaders, are set to gather in Davos, Switzerland, for the World Economic Forum starting Monday. AI is expected be at the forefront of discussions as misinformation poses a major threat to the global economy and democracy, the World Economic Forum said last week.
© 2024 New York Daily News. Distributed by Tribune Content Agency, LLC.