IMF: Artificial Intelligence Can Boost Growth but Exacerbate Inequality

The International Monetary Fund (IMF) predicts that artificial intelligence can improve global productivity but may reduce some job opportunities and exacerbate inequality.

In a new analysis, economists at the International Monetary Fund studied the potential impact of artificial intelligence on the global labor market. While many studies predict that AI will automate jobs, this technology often replaces human work. The IMF's analysis weighs these two scenarios.

The research results are shocking: nearly 40% of jobs worldwide are susceptible to the impact of AI automation or enhancement.

Historically, new technologies have often affected daily tasks, but AI will also impact high-skilled positions. Therefore, developed economies face greater risks from AI, but they will also reap more benefits compared to emerging markets.

According to the IMF's research, about 60% of jobs in developed economies may be affected by AI. About half of these jobs can benefit from AI integration, improving productivity. In the remaining jobs, AI can perform critical tasks, reducing labor demand. In some cases, human work may disappear completely.

IMF economists predict AI risks of 40% and 26% for emerging and developing economies, respectively. This indicates that developing economies are less directly disrupted by AI compared to developed economies. However, many emerging markets lack the infrastructure and skills to leverage AI advantages. Over time, this may exacerbate inequality between countries.

The IMF warns that AI may also lead to inequality within countries. Workers who can utilize AI may become more productive and earn higher wages, while those who cannot will fall behind.

Research shows that AI can accelerate the productivity of inexperienced employees. Therefore, younger workers may benefit more from AI opportunities, while older workers may struggle to adapt.

Developed economies have better prepared for the adoption of AI but still need to prioritize innovation, integration, and regulation to foster its safe and responsible use. For emerging markets, the immediate priority is to develop digital infrastructure and skills.

To assist countries in formulating effective policies, the IMF has introduced the AI Readiness Index, which assesses the readiness in areas such as digital infrastructure, human capital, innovation, and regulation.

The era of AI has arrived, and proactive measures are crucial to ensure its benefits are shared for the prosperity of all.