AI will impact 40% of global jobs – IMF

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has predicted that artificial intelligence (AI) is poised to impact approximately 40% of jobs across the globe.

“Advanced economies face greater risks from AI – but also more opportunities to leverage its benefits – compared with emerging market and developing economies,” Georgieva wrote in a blog post on Sunday, citing the IMF’s recent analysis on the subject.

This stems from AI’s proficiency in influencing high-skilled positions, as noted by Georgieva. Furthermore, she asserted that in advanced economies, approximately 60% of jobs could potentially be subject to the transformative effects of AI.

“Roughly half the exposed jobs may benefit from AI integration, enhancing productivity. For the other half, AI applications may execute key tasks currently performed by humans, which could lower labour demand, leading to lower wages and reduced hiring,” Georgieva wrote.

“In the most extreme cases, some of these jobs may disappear,” she added.

In comparison, Georgieva expects emerging markets and developing economies to “face fewer immediate disruptions from AI.”

Nevertheless, Georgieva emphasized the imperative for policymakers to proactively address the potential rise in inequality and social tensions triggered by AI.

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She advocated for the establishment of robust social safety nets and the implementation of comprehensive retraining programs specifically designed for vulnerable workers in various countries.

Warning calls

The IMF is not alone in issuing warning calls on AI. In March, Goldman Sachs, in a comprehensive report, articulated concerns stating that the disruptive impact of AI has the potential to affect upwards of 300 million jobs globally.

In a podcast interview conducted in November, Annesh Raman, the Vice President of LinkedIn, expounded on the transformative impact of AI. He asserted that the evolving landscape of AI is anticipated to diminish the relative value of technical skills, thereby elevating the significance of soft skills in the professional realm.

“The shelf life of a degree is shrinking pretty dramatically,” Raman told Molly Wood, the host of Microsoft’s podcast “Worklab.”