WASHINGTON - The International Monetary Fund (IMF) has raised concerns about the potential impact of artificial intelligence (AI) on employment across the globe. IMF Managing Director Kristalina Georgieva highlighted the significant challenges that advancements in AI could pose to the labor market, with a recent IMF report indicating that AI will influence 60% of jobs in developed regions and 40% of jobs worldwide.
Emerging markets are expected to experience a 40% impact rate. Half of these jobs could endure negative impacts; others may benefit from efficiency gains. However, the advancement in technology poses a risk of widening global digital divides and income inequalities, especially affecting older employees.
The report sheds light on the increasing inequality between nations as a consequence of AI development. Georgieva underscored the urgency of establishing new social safety nets and crafting policy strategies tailored to developed economies to address the risks associated with this technological progress. She also emphasized the importance of policy interventions to assist low-income areas in exploiting AI opportunities.
These pressing issues are set to be a central topic at the forthcoming World Economic Forum in Davos, where global leaders will convene to discuss and strategize on pivotal economic trends and challenges. The forum will provide a platform for dialogue on how best to navigate the transformative effects of AI on employment and ensure that countries are equipped to mitigate the potential for increased disparities.
The real-world impact of AI on employment is exemplified by Buzzfeed Inc.'s turn to AI for content creation, which resulted in over a hundred layoffs, highlighting businesses' drive towards automation. Regulatory responses vary as the EU finalizes a tentative deal on AI regulation, while the US ponders its federal stance amidst growing corporate investments in artificial intelligence technologies.
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