AI has helped to increase the productivity of humans and has made everyday tasks a lot easier than ever before. But ever since people learned about artificial intelligence technology, everyone has been worried about its AI’s impact on jobs and employment. Will AI replace our jobs, or will it only be used as a really helpful tool to increase our productivity? This has always been the question. The IMF’s managing director, Kristalina Georgieva, explaining about AI’s impact on jobs and inequality wrote in her blog post that artificial intelligence risks job security around the world but also offers “tremendous opportunity” to boost flagging productivity levels and fuel global growth.
AI’s Impact on Jobs and Inequality
Many studies have predicted job losses due to AI, but according to the IMF’s analysis, AI is most likely to complement human work. Almost 40 percent of global employment is exposed to AI. Automation and IT have always affected routine tasks, but the one main thing that makes AI technology different is its ability to impact highly skilled jobs.
According to the IMF, in advanced economies, about 60% of jobs will be impacted by AI, so these economies also have greater risks from AI. Roughly half of these jobs will not be completely replaced by AI but will benefit from AI integration to boost productivity. Whereas the other half of jobs currently done by humans might be done by AI applications, which will lower labor demand and, in extreme cases, even cause job losses. But these advanced economies will also have the advantage of getting more opportunities to enjoy the benefits of AI.
Whereas in emerging or developing economies, about 26-40% of jobs will be impacted by AI, so these economies will currently face lower risks from AI. On the other hand, these countries don’t have the infrastructure to leverage the benefits of AI. The above situation will, over time, worsen inequality among nations.
According to the IMF, AI will also increase inequality within countries, as higher-income and young workers will see a disproportionate increase in their income as AI can help less experienced workers enhance their productivity more quickly. Lower-income and older workers might fall behind as they might find it difficult to adapt to the new technology.
Preventive measures to control inequality
In most scenarios, AI is going to increase overall inequality, so it is important for policymakers to act fast and prevent the technology from creating further social tensions. The IMF’s managing director, Kristalina Georgieva, said, “It is crucial for countries to establish comprehensive social safety nets and offer retraining programs for vulnerable workers. In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality.” This will help everyone increase their productivity by harnessing AI technology.
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