WASHINGTON (dpa-AFX) - The head of the International Monetary Fund has warned that the rapid advance of artificial intelligence will affect nearly 40 percent of jobs around the world.
IMF Managing Director Kristalina Georgieva pointed out the negative impact of the latest software technology on global labor market, based on a study, in a blog post.
While admitting that the technological revolution could jump-start productivity, boost global growth and raise incomes around the world, she points out that it could also replace jobs and deepen inequality.
Georgieva says the net effect of AI is difficult to foresee, as the technology will ripple through economies in complex ways.
She stressed the need to come up with a set of policies to safely leverage the vast potential of AI for the benefit of humanity.
In a new analysis, IMF staff examined the potential impact of AI on the global labor market.
According to the analysis, advanced economies will experience the benefits and pitfalls of AI sooner than emerging market and developing economies, largely due to their employment structure focused on cognitive-intensive roles.
In advanced economies, about 60 percent of jobs may be impacted by AI. Roughly half the exposed jobs may benefit from AI integration, enhancing productivity. For the other half, AI applications may execute key tasks currently performed by humans, which could lower labor demand, leading to lower wages and reduced hiring.
The study also notes the possibility of some of these jobs disappearing as AI can do them.
In contrast to advanced economies, in emerging markets and low-income countries, AI exposure is expected to be 40 percent and 26 percent, respectively. These findings suggest emerging market and developing economies face fewer immediate disruptions from AI. At the same time, 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.
'Advanced economies and more developed emerging markets need to focus on upgrading regulatory frameworks and supporting labor reallocation, while safeguarding those adversely affected,' the study says.
To help countries craft the right policies, the IMF has developed an AI Preparedness Index that measures readiness in areas such as digital infrastructure, human-capital and labor-market policies, innovation and economic integration, and regulation and ethics.
Using the index, IMF staff assessed the readiness of 125 countries. The findings reveal that wealthier economies, including advanced and some emerging market economies, tend to be better equipped for AI adoption than low-income countries. Singapore, the United States and Denmark posted the highest scores on the index, based on their strong results in all four categories tracked.
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