In a blog post on Sunday, the International Monetary Fund (IMF) warned that artificial intelligence (AI) will “likely worsen overall inequality” in what they see as a troubling trend that policymakers need to address.
Staff for IMF examined the potential impact of AI on the global labor market in a new analysis, IMF said. According to the report, AI will impact high-skilled jobs and as a result, advanced economies are poised to experience the greatest risks from AI—with about 60% of jobs in advanced economies being impacted by AI.
About half of jobs exposed to AI will be complimented by the technology, but the other half could cut labor demand and lead to lower wages. In extreme cases, says the IMF, some jobs will disappear entirely.
Emerging markets will experience an AI exposure of 40%, while low-income countries will be exposed to AI at levels of 26%. The IMF believes that for this reason, these economies will face fewer disruptions from AI. However, many of these countries may be unable to take advantage of the opportunities offered by AI because they lack the necessary infrastructure or skilled workforces. Because of this, the inequality between global economies could worsen.
Older workers and those unwilling to embrace AI will be more vulnerable than younger workers to the negative impacts of AI in the workplace, the IMF added. And for firms that already have access to AI, capital returns will favor those who are already high earners which will “exacerbate” inequality, the IMF adds.
"It is crucial for countries to establish comprehensive social safety nets and offer retraining programs for vulnerable workers. In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality,” the IMF wrote.
The IMF is urging lawmakers in both advanced and emerging nations to begin drafting policies that will help regulate AI so that the benefits of this technology can be experienced and shared responsibly. The agency has already developed an AI Preparedness Index, according to their blog post, that “measures readiness in areas such as digital infrastructure, human-capital and labor-market policies, innovation and economic integration, and regulation and ethics”.