The International Monetary Fund indicates that artificial intelligence is likely to impact 40% of global jobs, with an impact of up to 60% in advanced economies, while an estimated 26% of jobs in low-income countries could be affected.
Kristalina Georgieva, Managing Director of the International Monetary Fund, stated: “About half of the jobs could benefit from integration with artificial intelligence, increasing productivity, while AI applications could perform basic tasks currently done by humans in the other half of jobs, potentially reducing demand for labor and consequently leading to wage reductions and unemployment.”
The post suggests that most likely, artificial intelligence will complement human work rather than completely replace jobs.
In a recent study, the International Monetary Fund confirmed that both advanced and emerging economies are facing significant uncertainties regarding these predictions.
While advanced economies can better leverage the benefits of technology, they may also face short-term disruptions.
On the other hand, developing and emerging economies may take a long time to be affected by AI-related disruptions.
Developing and emerging economies may miss out on the benefits of technology due to a lack of readiness to leverage it for economic and social growth, potentially leading to increased digital divide within the country and widening the gap between nations.
The post indicates that automation has affected routine tasks, differing from artificial intelligence which may impact jobs requiring skills.
The article stated: “Advanced economies face significant challenges from the rapid development of artificial intelligence compared to emerging markets and developing countries.”
Technological advancement significantly affects the older workforce compared to the young workforce.
Senior workers may need to acquire new skills, and their opportunities to participate in these training programs may decrease, as the expected benefits could be limited due to the remaining time in their working years.
Companies may find it unprofitable to invest in training employees with short-term job prospects for new skills.
The artificial intelligence technology gained great popularity after the launch of ChatGPT in 2022. Many companies have started to enhance productivity by using this new technology, leading to the dismissal of numerous employees.
This study highlights the necessity to accelerate policy makers’ processes in shaping policies due to the continuous adoption of emerging technologies.
