AI Will Transform the Global Economy. Let’s Make Sure It Benefits Humanity.
We are on the brink of a technological revolution with the potential to significantly enhance productivity, stimulate global growth, and increase incomes worldwide. However, alongside these prospects, there are concerns about job displacement and deepening inequality.
The rapid advancement of artificial intelligence (AI) has captured global attention, generating both excitement and apprehension about its profound impact on the global economy. Predicting its net effect is challenging as AI permeates economies in intricate ways. What is clear is the necessity for policies that harness AI’s vast potential for the benefit of humanity.
Reshaping the Nature of Work
In a recent analysis, IMF staff explored AI’s potential impact on the global labor market. While many studies predict job displacement due to AI, it is also recognized that AI can complement human work. The IMF analysis encompasses both these dynamics.
The findings reveal that nearly 40 percent of global employment is exposed to AI. Unlike previous technological shifts that mainly affected routine tasks, AI’s distinguishing feature is its capacity to influence high-skilled jobs. Consequently, advanced economies face higher risks—but also greater opportunities—to leverage AI compared to emerging and developing economies.
In advanced economies, approximately 60 percent of jobs may be affected by AI. Around half of these jobs could benefit from AI integration, enhancing productivity. However, the other half may experience reduced labor demand, potentially leading to lower wages and decreased hiring. In extreme cases, some jobs may become obsolete.
Conversely, AI exposure in emerging markets and low-income countries is expected to be 40 percent and 26 percent, respectively. While these regions may experience fewer immediate disruptions, their lack of infrastructure and skilled workforce poses a risk that AI could exacerbate global inequality over time.
For further insights into AI’s impact on the global economy, visit:
