Artificial intelligence is set to impact up to 60 percent of jobs in developed countries.
The grim prediction about the rapidly expanding technology was issued in a new analysis by the International Monetary Fund.
IMF’s managing director Kristalina Georgieva says in “most scenarios” AI “will likely worsen overall inequality.” She added policymakers should address the “troubling trend” of AI to “prevent the technology from further stoking social tensions.”
The IMF also said AI is likely to affect 40 percent of overall jobs and around 60 percent in advanced economies.
Its findings echo a report from Goldman Sachs in 2023, which estimated AI could replace the equivalent of 300 million full-time jobs around the world.
Britain’s Prime Minister Rishi Sunak said in November people should not be worried about the impact of AI on jobs as education reforms would boost skills.
“Many of these countries [where jobs will be impacted by AI] don’t have the infrastructure or skilled workforces to harness the benefits of AI, raising the risk that over time the technology could worsen inequality among nations,” Georgieva said.
Higher-income and younger workers may see a disproportionate increase in their wages after adopting AI, while lower-income and older workers could fall behind.
“It is crucial for countries to establish comprehensive social safety nets and offer retraining programs for vulnerable workers,” Ms Georgieva warned. “In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality.”
The European Parliament will vote on AI Act proposals to regulate the tech early this year. However, any legislation will not take effect until at least 2025. The U.S., U.K. and China have yet to publish AI guidelines.
