According to Kristalina Georgieva, managing director of the IMF, “AI will likely worsen overall inequality in most scenarios.”
Policymakers should address this “troubling trend,” according to Ms. Georgieva, in order to “prevent the technology from further stoking social tensions.”
The rise in popularity of AI has drawn attention to both its advantages and disadvantages.
According to the IMF, advanced economies are likely to see a higher percentage of jobs—roughly 60%—affected by AI. For the most part, workers can anticipate increased productivity as a result of the integration of AI.
In other cases, AI will be able to carry out important jobs that humans currently do. This might result in a decrease in the need for labor, which would have an impact on wages or possibly lead to the elimination of jobs.
However, according to IMF projections, the technology will only impact 26% of jobs in low-income nations.
It is consistent with a 2023 Goldman Sachs report that predicted AI could replace 300 million full-time jobs, but it also suggested that increased productivity could lead to the creation of new jobs.
According to Georgieva, “many of these countries 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” .
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In general, younger and wealthier workers might experience a disproportionate pay increase as a result of AI adoption.
According to the IMF, older and lower-income workers may lag behind.
“It is crucial for countries to establish comprehensive social safety nets and offer retraining programmes for vulnerable workers,” said Georgieva. “In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality.”
As world leaders in business and politics convene in Davos, Switzerland for the World Economic Forum, the IMF has released its analysis.
Talk about AI has increased since the release of ChatGPT and other similar apps.
Globally, there is more regulation pertaining to technology. The world’s first comprehensive laws regulating the use of artificial intelligence were tentatively agreed upon last month by officials from the European Union.
Some of the first national AI regulations in the world, including guidelines for the creation and application of algorithms, have been implemented in China.
President Biden issued an executive order in October requiring developers to provide the US government with safety data related to AI.
The UK organized an AI Safety Summit the following month, where several nations signed a declaration on the safe development of the technology.
