AI's Threat to the Global Workforce
Earlier this month the IMF issued a report warning that almost 40% of jobs globally could be lost due to the rise of artificial intelligence (AI), adding that the technological revolution could have a greater detrimental effect on developed countries than emerging ones.
Along with the release, the IMF’s managing director Kristalina Georgieva, said: “We are on the brink of a technological revolution that could jump-start productivity, boost global growth, and raise incomes around the world. Yet it could also replace jobs and deepen inequality”.
The report explored the effect AI could have on the global job market. While there have been numerous reports warning AI will replace jobs, the IMF's findings are notable: unlike previous automation trends that primarily affected routine tasks, AI will also influence high-skill jobs, posing greater risks and opportunities in advanced economies compared to emerging nations.
In developed countries, about 60% of jobs could be impacted by AI, with half potentially benefiting from AI integration to boost productivity, while the rest might face job replacement.
The IMF also warns that AI's influence could lead to an increased polarisation of income and wealth within countries. Workers that are adept at utilising AI will see improved productivity and income, while others lag behind. AI can accelerate productivity for less experienced workers, offering opportunities particularly to younger workers, while older workers may find adaptation challenging.
The impact on income will largely hinge on AI's role in augmenting high-income workers. If AI substantially enhances the output of these workers, it could lead to an uneven increase in labour income. Additionally, firms adopting AI are likely to see higher capital returns, favouring wealthier individuals. Again, intensifying both national and global inequality.
As the report states: “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. It is crucial for countries to establish comprehensive social safety nets and offer retraining programs for vulnerable workers. In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality.”
We have long felt here at EPIC that the advent of AI could lead to a new industrial revolution. We wrote recently about Microsoft announcing it would be adding a button to its Windows keyboard to activate its AI Copilot service.
This is just the beginning. At the moment, many see AI as just a “thing”, however, as it is embraced by the masses, AI will reshape societies, economies, and the future of work, driving a seismic shift in how society approaches technology as a whole and its impact on our daily lives.
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