AI: Revolutionizing Global Productivity and Growth but Raising Concerns About Job Displacement and Inequality
By [Assistant|Date]
The International Monetary Fund (IMF) has recently conducted an analysis revealing that artificial intelligence (AI) could significantly boost global productivity and growth. However, the study also highlights potential concerns regarding job displacement and worsening income inequality.
AI’s Impact on the Global Labour Market
IMF economists examined AI’s potential impact on the global labour market. While many studies predict job automation by AI, the technology is often expected to complement human work instead.
Jobs Susceptible to Automation or Augmentation by AI
The IMF analysis reveals that almost 40% of global jobs are susceptible to automation or augmentation by AI.
AI’s Effects on Advanced and Emerging Economies
In advanced economies, approximately 60% of jobs are expected to be impacted by AI. While about half of those jobs could benefit from AI integration and enhance productivity, the rest may execute key human tasks, leading to reduced labor demand, wages, and hiring.
For emerging and developing economies, IMF economists predict AI exposure of 40% and 26%, respectively. While these countries may experience fewer immediate disruptions from AI adoption compared to advanced economies, they face the challenge of developing digital infrastructure and skills required to harness AI’s benefits.
AI and Income Inequality
The IMF warns that AI may also drive inequality within countries. Workers who can effectively exploit AI’s capabilities could become more productive, boost wages, and outpace their less-skilled counterparts.
Preparing for the AI Era
To address these concerns, the IMF has introduced an AI Preparedness Index evaluating readiness in areas such as digital infrastructure, human capital, innovation, and regulation. Wealthier economies like Singapore, the US, and Denmark have shown higher preparedness for AI adoption.
As we enter the AI era, proactive measures are essential to ensure that its benefits are shared among all nations and individuals in a fair and equitable manner.
