AI will affect about 40% of global jobs: IMF

Kwan Wei Kevin Tan

January 15, 2024 7:09 AM

IMF Managing Director Kristalina Georgieva predicts that AI will affect roughly 40% of jobs worldwide.

IMF Managing Director Kristalina Georgieva.Anna Moneymaker via Getty Images

IMF chief Kristalina Georgieva says AI will impact roughly 40% of global employment.
She expects advanced economies to be more affected than emerging markets and developing economies.
"In most scenarios, AI will likely worsen overall inequality," she wrote in a blog post.

"Advanced economies face greater risks from AI — but also more opportunities to leverage its benefits — compared with emerging market and developing economies," Georgieva wrote in a blog post on Sunday, citing the IMF's recent analysis on the subject.

This is because of AI's "ability to impact high-skilled jobs," Georgieva said. And in the case of advanced economies, some 60 percent of jobs may be affected by AI, she added.

"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," Georgieva wrote.

"In the most extreme cases, some of these jobs may disappear," she added.

In comparison, Georgieva expects emerging markets and developing economies to "face fewer immediate disruptions from AI."

Nonetheless, Georgieva called on policymakers to guard against the potential inequality and social tensions that AI might bring. She also asked that countries put in place "comprehensive social safety nets and offer retraining programs for vulnerable workers."

The IMF is not alone in sounding warning calls on AI. In March, Goldman Sachs said in a report that AI could disrupt over 300 million jobs.

LinkedIn vice president Annesh Raman said in a podcast interview in November that AI would reduce the value of technical skills, making soft skills more important.

"The shelf life of a degree is shrinking pretty dramatically," Raman told Molly Wood, the host of Microsoft's podcast "Worklab."

Representatives for IMF did not immediately respond to a request for comment from Business Insider sent outside regular business hours.

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Kwan Wei Kevin Tan