IMF New Reports say 40% Jobs will be Replaced by AI
AI Will Transform the Global Economy, But We Must Ensure It Benefits Humanity
Artificial intelligence is poised to significantly impact economies and workforces around the world in the coming years. A recent report from the International Monetary Fund (IMF) analyzed AI’s potential effects and offered recommendations for policymakers to harness its benefits while mitigating risks.
Nearly 40% of Jobs Globally Could Be Impacted by AI
The IMF report found that almost 40% of jobs worldwide could be impacted by AI, either through replacement, complementing human work, or a combination. This will reshape workforces and require adaptations.
Workforce Impacts Will Vary Across Countries
The impacts on workforces will vary across country income levels:
- In advanced economies, approximately 60% of jobs may be affected by AI. The IMF estimates AI could replace humans in almost 25% of these jobs, while also complementing workers in another 25%, making them more productive. However, displacement carries risks of job losses or lower wages.
- In emerging market economies, roughly 40% of jobs are susceptible to AI impacts. While risks of job losses may be lower initially, these countries also have less capacity to take advantage of AI to raise productivity.
- In developing economies, approximately 25% of jobs are exposed to AI. As with emerging markets, lower-income countries face constraints in leveraging AI while also facing future automation risks.
AI Brings Opportunities Alongside Challenges
While the workforce impacts from AI carry risks, the technology also presents considerable opportunities for economic growth if harnessed carefully. The IMF estimates productivity gains from AI could increase global GDP by about 4% cumulatively by 2030. Realizing these productivity gains while supporting displaced workers presents policy challenges.
Preparing Workforces for AI Integration
As the IMF notes, higher-skilled workers tend to adapt more readily to AI tools, rapidly increasing productivity. Lower-skilled workers may struggle without retraining.
Policy recommendations include:
- Expanding educational opportunities
- Offering workforce retraining programs
- Strengthening social safety nets
These measures can support equitable opportunities and reduce inequality.
Cultivating an AI-Ready Environment
The IMF also created an AI Preparedness Index spanning four categories:
- Digital infrastructure
- Human capital and labor market policies
- Innovation and integration
- Regulation and ethics
The Index scores countries on their readiness for AI adoption. Advanced economies like Singapore, the U.S., and Denmark lead the rankings based on holistic readiness.
For advanced countries, the IMF recommends prioritizing AI innovation while developing regulatory safeguards. Emerging markets should focus on digital infrastructure and workforce development.
Policy Choices Today Will Shape an Inclusive AI Future
AI brings transformational potential alongside risks of job losses and rising inequality. With responsible policy choices, countries can build a more equitable and prosperous economic landscape.
As the IMF notes, the decisions made today will determine whether the AI era brings shared prosperity or exacerbates social fractures. Priorities like workforce retraining programs, strong social safety nets, promoting competitiveness, and developing regulations will help achieve the most beneficial results.
The future remains open, but the stakes are high. An inclusive, people-centered approach can steer AI’s monumental potential toward broadly shared wellbeing rather than unequal outcomes favoring high earners.
With conscientious policies centered on expanding opportunities, countries can thrive in the dawning age of artificial intelligence.
For more information read IMF official Report here.
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