Emmanuel OchayiInternational Monetary Fund (IMF) Managing Director, Kristalina Georgieva, has asserted that artificial intelligence (AI) is poised to influence approximately 40% of global employment, with advanced economies facing both heightened risks and unique opportunities compared to their emerging market counterparts.
In a blog post, Georgieva emphasized that advanced economies are more susceptible to AI’s effects due to its significant impact on high-skilled jobs.
Join our WhatsApp Channel“In most scenarios, AI will likely worsen overall inequality,” Georgieva stated, underscoring the potential threat to job stability and wages.
She predicted that around 60% of jobs in advanced economies could be affected by AI, leading to a potential reduction in labor demand, lower wages, and diminished hiring.
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Conversely, Georgieva expects emerging markets and developing economies to encounter fewer immediate disruptions from AI.
Despite this, she urged policymakers to proactively address potential inequality and social tensions, emphasizing the importance of establishing comprehensive social safety nets and retraining programs for vulnerable workers.
The IMF’s warnings echo concerns raised by other entities. Goldman Sachs projected in March that AI could disrupt over 300 million jobs, while LinkedIn’s vice president, Annesh Raman, highlighted the evolving importance of soft skills in the face of AI advancements.
As AI continues to shape the employment landscape, Georgieva’s call for a balanced approach and proactive measures aims to mitigate the potential negative impacts on global employment.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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