IMF predicts Artificial Intelligence will affect forty per cent of jobs and make inequality worse. – EU Reporter

A recent study conducted bytheIMFanticipates that artificial intelligence would have an impact on roughly forty per cent of all occupations in the world.

"In most scenarios, artificial intelligence will likely worsen overall inequality," argues Kristalina Georgieva, managing director of the International Monetary Fund.

For the sake of "preventing the technology from further stoking social tensions," Ms. Georgieva suggests that governments should address the "troubling trend."

The benefits and dangers associated with artificial intelligence have been brought to light as a result of its widespread adoption.

Approximately sixty per cent of occupations in advanced economies are expected to be impacted by artificial intelligence, according to the International Monetary Fund (IMF). There are fifty per cent of these situations in which workers can anticipate gaining advantages from the incorporation of AI, which will result in an increase in their productivity.

Moreover, artificial intelligence will be able to carry out essential jobs that are currently carried out by people in other contexts. It is possible that this may reduce the need for work, which would have an impact on wages and may even eliminate jobs.

According to projections made by the International Monetary Fund (IMF), the technology will only have an impact on 26% of occupations in countries with low incomes.

It is reminiscent to a forecast that was published by Goldman Sachs in 2023. In that analysis, it was anticipated that artificial intelligence might replace the equivalent of 300 million full-time jobs. However, the report also stated that additional employment may be created with an increase in productivity.

According to Ms 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".

Following the implementation of artificial intelligence, it is possible that workers with higher incomes and younger workers may experience a disproportionate increase in their pay.

The IMF is of the opinion that those with lower incomes and those who are older could fall behind.

"It is crucial for countries to establish comprehensive social safety nets and offer retraining programmes for vulnerable workers," Ms Georgieva commented on. "In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality."

The International Monetary Fund (IMF) research comes at a time when political and corporate leaders from around the world are gathering at the World Economic Forum in Davos, Switzerland.

Artificial intelligence is currently a topic of controversy as a result of the meteoric rise in popularity of applications such as ChatGPT.

Everywhere in the world, the technology is being subjected to more stringent regulations. There was a temporary agreement reached by authorities from the European Union last month over the world's first comprehensive laws to regulate the use of artificial intelligence.

China is the first country in the world to implement some of the world's first national regulations on artificial intelligence (AI). These regulations include standards that govern the development and deployment of algorithms.

For the month of October, President Biden signed an executive order that required developers to provide the United States government with information regarding the safety of artificial intelligence.

The following month, the United Kingdom played host to an artificial intelligence safety summit, during which a number of nations signed a declaration emphasising the importance of ensuring the safe development of the technology.

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IMF predicts Artificial Intelligence will affect forty per cent of jobs and make inequality worse. - EU Reporter