Nearly 40 per cent of global jobs will be impacted by artificial intelligence, with advanced economies facing more exposure than emerging markets and low-income countries, according to an International Monetary Fund analysis.

According to a media report, IMF Managing Director Kristalina Georgieva said in a blog post that, in most scenarios, AI is likely to exacerbate overall inequality, emphasising the need for proactive measures by policymakers to prevent the technology from fueling social tensions.“In most scenarios, AI will likely worsen overall inequality, a troubling trend that policymakers must proactively address to prevent the technology from further stoking social tensions,” she said. The income inequality impact of AI will depend on how much the technology complements high-earners, with increased productivity from high-income workers and companies potentially widening the wealth gap. Georgieva recommended that countries implement "comprehensive social safety nets" and retraining programmes to support vulnerable workers.

While the analysis suggests the potential for AI to fully replace some jobs, it is more likely to complement human work. Advanced economies are expected to see around 60 per cent of jobs affected, surpassing the impact on emerging and low-income countries. Georgieva's perspective aligns with ongoing discussions on AI at the World Economic Forum in Davos, Switzerland, where global business and political leaders are convening.Companies have been investing heavily in AI, leading to concerns among employees about the future of their roles. The IMF's analysis comes at a time when regulatory frameworks for AI are being considered globally, with the European Union reaching a tentative deal in December on legislation to establish safeguards for AI, while the United States is still evaluating its federal regulatory stance

(TNS) — The world is at an AI crossroads that could either greatly benefit humankind or deepen inequality, depending on how we use it, the International Monetary Fund (IMF) said in an analysis released Sunday.
“We are on the brink of a technological revolution that could jumpstart productivity, boost global growth and raise incomes around the world,” IMF managing director Kristalina Georgieva said in a statement. “Yet it could also replace jobs and deepen inequality.”
The effects of AI are set to ripple throughout the global economy and have the power to reshape it entirely, the IMF said in its analysis of the technology’s impact on the global labor market. Around the world, 40% of all employment is affected in some way by AI, with the number rising to 60% in higher-income countries.
“Roughly half the exposed jobs may benefit from AI integration, enhancing productivity,” Georgieva wrote. “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. In the most extreme cases, some of these jobs may disappear.”
A gap may grow between those who utilize AI and those who don’t or cannot, the IMF found.
The speed with which businesses are integrating AI into their practices creates an urgent need for policy responses, Georgieva wrote.
The IMF report comes as more than 60 heads of state and government, plus hundreds of business leaders, are set to gather in Davos, Switzerland, for the World Economic Forum starting Monday. AI is expected be at the forefront of discussions as misinformation poses a major threat to the global economy and democracy, the World Economic Forum said last week.