IMF Managing Director Predicts AI Will Affect 60% of Jobs in Advanced Economies

AFP Washington

Washington

Updated Monday,15January2024 - 10:05

Artificial intelligence (AI) will affect 60% of jobs in advanced economies, IMF Managing Director Kristalina Georgieva told AFP shortly before leaving for the World Economic Forum in Davos, Switzerland.

"Advanced economies and some emerging markets will see 60 percent of their jobs affected," he said in an interview in Washington, citing a new International Monetary Fund report on the subject.

"And then it goes down to 40% for emerging markets, to 26% for low-income countries," he added, referring to the IMF report, which notes that, collectively, nearly 40% of global employment is exposed to AI.

The report notes that half of the jobs affected by AI will be negatively impacted, while the rest may actually benefit from increased productivity due to AI.

"Maybe your job disappears completely, which is not good, or artificial intelligence improves your work, so that you are more productive and your income level increases," Georgieva told AFP.

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While AI will initially have less of an impact on emerging markets and developing economies, they are also less likely to benefit from the advantages of the novel technology, according to the IMF.

"This could exacerbate the digital divide and income disparity between countries," the report continued, adding that older workers are likely to be more vulnerable to the change that AI will bring.

The IMF sees a significant opportunity for policy prescriptions to help address these concerns, Georgieva told AFP. "We need to focus on helping low-income countries, in particular, move faster so they can take advantage of the opportunities that artificial intelligence will present," he said.

"In other words, embrace it, it's coming," he added. "So artificial intelligence, yes, it's a little scary. But it's also a tremendous opportunity for everyone."