IMF predicts that AI will deepen inequality

According to a new analysis from the International Monetary Fund (IMF), artificial intelligence will affect almost 40% of all jobs and deepen global economic inequality.

IMF Managing Director Kristalina Georgieva said that “in most scenarios, AI could worsen overall inequality.” Georgieva added that policymakers should pay attention to this “worrying trend” to “prevent technology from increasing social tensions.”

Development Artificial Intelligence has revealed the benefits and risks associated with artificial intelligence.
In half of these cases, employees can expect benefits from AI integration to improve their productivity.

In other cases, artificial intelligence will be able to perform key tasks that humans currently perform. This could reduce labor demand, affect wages and even destroy jobs.

The risk of "deepening inequality"

Meanwhile, the IMF predicts that technology will only affect 26% of jobs in low-income countries.
This echoes a Goldman Sachs report 2023 which said AI could replace the equivalent of 300 million full-time jobs, but new jobs could emerge as productivity increases.

Georgieva noted that “many countries do not have the infrastructure or skilled workforce to exploit the benefits of artificial intelligence, increasing the risk that this technology could deepen inequalities between countries and increase over time.”

In general, younger and higher-earning workers may see a disproportionate increase in their wages after adopting AI.

IMF said low-income workers and the elderly could be left behind

"It is essential that countries establish comprehensive social protection systems and provide retraining programs for vulnerable workers," Georgieva said.

"By doing so, we can make the transition to AI more inclusive, protect livelihoods and reduce inequality."

The IMF analysis was presented at a meeting of global political and business leaders at the World Economic Forum in Davos, Switzerland.

Artificial intelligence has become a topic of debate with the rise in popularity of applications like ChatGPT.

Technology is increasingly regulated around the world

Last month, European Union officials reached a preliminary agreement on the world's first comprehensive rules governing the use of artificial intelligence.

The European Parliament will vote on the Artificial Intelligence Law early this year, but no legislation will come into force until at least 2025.

The United States, United Kingdom and China have yet to publish their own guidelines on AI.