AI could displace up to 40% of jobs, with advanced economies most exposed: IMF | Technology News

Artificial intelligence is set to transform the workplace, with up to 40% of jobs potentially affected globally according to a new analysis by the International Monetary Fund. However, surprisingly, the impact will not be felt equally across countries. Advanced economies like the US and Europe face greater disruption than emerging markets and low-income nations.

“In most scenarios, AI will likely worsen overall inequality, a troubling trend that policymakers must proactively address to prevent the technology from further stoking social tensions,” said IMF Managing Director Kristalina Georgieva in a recent blog post about the study. She warned that if AI complements high-income workers more, it could widen wealth gaps as returns to capital increase.

To combat this, Georgieva recommended countries implement “comprehensive social safety nets” and retraining programs to support workers vulnerable to displacement. While some occupations could become fully automated by AI, it is more likely to augment human capabilities in most roles initially.

Georgieva’s views come as political and business leaders meet at the World Economic Forum’s annual meeting in Davos this week, where AI’s impact is a hot topic.

The regulatory environment for AI remains in flux globally. For instance, the European Union reached a tentative deal last month on legislation governing use of the technology, including risk assessments and transparency rules. Meanwhile, the US is still evaluating its stance on AI regulation at the federal level.

In related news, 2024 is already seeing a wave of layoffs from tech companies including big names like Google and Amazon. In such a scenario where layoffs are already so common, would AI only exacerbate the problem? Time will tell.