IMF Warns AI Could Affect 40% of Global Jobs

The rapid advancement of artificial intelligence poses both opportunities and challenges for the global economy and labour market, according to a new analysis by the International Monetary Fund (IMF).

IMF Managing Director Kristalina Georgieva wrote in a blog post that AI could potentially impact around 40% of jobs worldwide as specific tasks become automated. At the same time, she acknowledged AI could boost productivity and economic growth if countries take the proper policy approaches.

In a report examining AI's effect on employment, the IMF estimates nearly 60% of jobs in advanced economies may be affected as technologies take over more skilled roles. It could lead to lower wages and reduced hiring for around half of these exposed positions. Some jobs may even disappear entirely.

Emerging markets and developing nations face less immediate disruption, with around 40% and 26% of jobs estimated to be impacted. However, many countries lack the digital infrastructure and skilled labour to capitalize on the benefits of AI.

The IMF has shown its concern that rising inequality within and between countries could result from the adoption of AI. Workers who leverage new technologies may see higher pay, while others risk falling behind. Younger populations tend to adapt more quickly, putting older generations at a disadvantage.

AI will likely worsen global income inequality unless governments implement robust social protections and retraining programs. The IMF has also developed an "AI Preparedness Index" to help countries strengthen areas like education, digital infrastructure, innovation, and ethics regulations to safely manage AI's rollout.

Georgieva warned that coordinated international action is urgently needed so AI "brings prosperity for all."