IMF: 40 percent of jobs worldwide may be lost due to AI; IMF warned, rich countries are in greater danger

Pankaj Prasad
IMF chief Kristalina Georgieva
IMF chief Kristalina Georgieva

The International Monetary Fund warned that the rise of artificial intelligence could impact nearly 40% of jobs worldwide.

The International Monetary Fund warned that the rise of artificial intelligence could impact nearly 40% of jobs worldwide. According to the IMF, high-income economies face greater risks due to AI than emerging markets and low-income countries.

According to IMF, use of AI poses a risk of increasing inequality

Washington DC-based IMF on Sunday assessed the potential impact of AI on the global labor market and said that in most cases, AI technology risks increasing social and economic inequality globally. IMF chief Kristalina Georgieva urged policymakers to tackle this "disturbing trend" and take proactive steps "to prevent further inflammation of social tensions."

AI can boost growth but it may also reduce jobs

Georgieva said, "We are on the brink of a technological revolution that could boost productivity, boost global growth and raise incomes around the world. But there are also fears it could lead to job losses." And inequality may increase."

60% of jobs could be lost in high-income countries due to AI impact

According to the IMF, about 60% of jobs in high-income countries could be affected by the increasing adoption of AI, and about half of these could also benefit from the use of AI to boost productivity. On the other hand, 40% of jobs in emerging markets could be affected by AI and 26% of jobs in low-income countries could be at risk.

The findings suggest that emerging markets and low-income countries may have less to lose from AI in the short term. According to the IMF, many countries do not have the skilled labor infrastructure to harness the immediate benefits of AI, increasing the risk that the technology could increase inequality.

Income and wealth inequality will increase due to AI

The IMF also said that AI could also affect income and wealth inequality in different countries of the world. It could also lead to polarization of people from different income groups. The IMF said in its report that workers who are able to harness the benefits of AI can increase their productivity and wages, while those who are not. There is a danger of them going further back.

Goldman Sachs had also warned that 30 crore jobs would be affected by AI

Before the IMF, Goldman Sachs warned that generative AI could impact 300 million jobs worldwide, although the Wall Street bank expressed hope that AI technology could boost labor productivity and growth and boost GDP by 7%. Can increase up to %.

The IMF report comes at a time when businessmen and politicians from around the world have gathered at the World Economic Forum in Davos, Switzerland. The WEF annual meeting will run till Friday this time, it is being held on the theme of "Rebuilding Trust".

Sri Lanka: IMF team visits Jaffna for the first time

A team of senior IMF officials monitoring Sri Lanka's relief package visited the Tamil-dominated northern district of Jaffna for the first time under the existing $2.9 billion agreement. Led by Peter Bruer, International Monetary Fund's Senior Mission Chief for Sri Lanka , the team met with the Governor of the Northern Province, PMS Charles, and other senior officials last week and discussed issues related to economic development in the province, demining programmes, rehabilitation of conflict-displaced persons and compensation for conflict victims.

Officials said they also discussed academic matters related to the University of Jaffna, operations following the COVID-19 pandemic and the adverse effects of climate change in the northern region. The team, which returned to Colombo on Monday, is scheduled to hold talks with the Finance Ministry.

The talks are expected to take place with Minister of State for Finance Shehan Semasinghe, who leads the IMF's local operations under President Ranil Wickremesinghe. In a meeting with President Wickremesinghe last Thursday, Brower expressed satisfaction at Sri Lanka's progress in implementing reforms aimed at reviving the economy. It is noteworthy that India's Finance Minister Nirmala Sitharaman visited Jaffna in November last year, where she inaugurated a branch of State Bank of India (SBI).