According to forecasts made by the International Monetary Fund (IMF), the introduction of artificial intelligence will have an impact on forty percent of the world’s workforce.

Even though AI has increased productivity, the IMF predicts that in the next years, it will likely cause a large number of jobs to be lost.

Managing Director of the Fund Kristalina Georgieva told reporters that artificial intelligence (AI) is here to stay during a press conference held on the fringes of the 2024 IMF-World Bank Spring Meeting in Washington, DC.

“A recent IMF study shows that artificial intelligence could affect up to 40 percent of jobs across the world and 60 percent in advanced economies.

“It could enhance workers’ productivity but also threatens some jobs. Investing in digital infrastructure and skills, as well as in strong social safety nets will determine the pace of AI adoption and its impact on productivity.”

AI “may also have an impact on income and wealth inequality within countries,” according to an IMF prediction made in January of this year. Income brackets may become more polarized, with workers who are able to use AI seeing increases in productivity and pay and those who are unable to do so falling behind. AI can help less experienced workers increase their productivity more quickly, according to research. While older workers might find it difficult to adjust, younger workers might find it easier to take advantage of opportunities.

“The effect on labour income will largely depend on the extent to which AI will complement high-income workers. If AI significantly complements higher-income workers, it may lead to a disproportionate increase in their labour income. Moreover, gains in productivity from firms that adopt AI will likely boost capital returns, which may also favour high earners. Both of these phenomena could exacerbate inequality.

“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.”