The IMF thinks AI will be bad news for jobs, wages, and international equality
AI has the potential to eradicate thousands of jobs, IMF warns
AI may end up being a double-edged sword for many workers, according to new research from the IMF which says that while the technology will enhance productivity for many of us, it also threatens jobs and wages in advanced societies.
The IMF anticipates that AI is set to affect almost 40% of jobs worldwide in some capacity, and will have huge negative impacts on equality.
The most advanced societies will see the greatest benefits from leveraging AI tools, but it will potentially make less advanced societies even poorer.
AI will likely "worsen overall inequality”
For advanced economies, AI will have an impact on around 60% of jobs, with half those potentially being taken by AI which will negatively impact the number of jobs available and the compensation offered by companies.
In its analysis, IMF managing director Kristalina Georgieva says “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.”
Due to poorer nations not having the necessary infrastructure or workforces to harness AI, they will see less of an impact on hiring rates and wages, but will potentially suffer from not being able to harness the benefits provided by AI such as increased efficiency, productivity and revenue. This could result in a greater level of inequality between the richest and poorest nations.
“Guided by the insights from the AI Preparedness Index, advanced economies should prioritize AI innovation and integration while developing robust regulatory frameworks,” Georgieva continued.
Are you a pro? Subscribe to our newsletter
Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!
“This approach will cultivate a safe and responsible AI environment, helping maintain public trust.”
AI regulation has been a particular focus for many nations due to the rapid increase in popularity of AI tools such as ChatGPT, and their potential for malicious use. Last November, the UK hosted the AI Safety Summit at which the UK, EU, US and China signed the Bletchley Declaration. This declaration lays out guidelines for the safe development of AI.
More from TechRadar Pro
- Vodafone signs $1.5bn Microsoft deal for AI, cloud and IoT
- Take a look at our rankings for the best AI writer software
- Looking to enhance your efficiency? Here are the best tools for boosting productivity
Benedict Collins is a Staff Writer at TechRadar Pro covering privacy and security. Benedict is mainly focused on security issues such as phishing, malware, and cyber criminal activity, but also likes to draw on his knowledge of geopolitics and international relations to understand the motivations and consequences of state-sponsored cyber attacks. Benedict has a MA in Security, Intelligence and Diplomacy, alongside a BA in Politics with Journalism, both from the University of Buckingham.
A US supercomputer with 8,000 Intel Xeon CPUs and 300TB of RAM is being auctioned — 160th most powerful computer in the world has some maintenance issues though and will cost thousands per day to run
French startup reveals quasi-immortal sensor that doesn't need energy to work — SilMach's ultra cheap microsensors can be used in a dizzying array of use cases