Kristalina Georgieva, Managing Director of the IMF expressed concerns in a blog post, stating that in most scenarios, AI is likely to worsen overall inequality. This troubling trend, she suggests, requires proactive measures from policymakers to prevent the technology from exacerbating social tensions.
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Georgieva emphasised that the impact of AI on income inequality will depend on how much the technology complements high earners. Increased productivity from high-income workers and companies could widen the wealth gap, she noted. To address this, countries are advised to establish “comprehensive social safety nets” and implement retraining programs for vulnerable workers.
AI Job Impact Scenarios
The analysis suggests that while there is potential for AI to fully replace some jobs, the more likely scenario is its complementarity with human work. Advanced economies are expected to see around 60 percent of jobs affected, surpassing the impact on emerging and low-income countries.
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Georgieva’s insights on AI coincide with discussions among global business and political leaders at the World Economic Forum in Davos, Switzerland, where AI is a prominent topic.
Companies, including Buzzfeed Inc., have been investing heavily in AI, raising concerns among employees about the future of their roles. Buzzfeed, for instance, announced plans to use AI for content creation, leading to the closure of its core news department and the layoff of over 100 staff members.
Also Read | Human vs Machine: Is Artificial intelligence job creator or terminator? Experts assess sector-wise impact
In December, the European Union reached a tentative deal on legislation to establish safeguards for AI. Meanwhile, the United States is still evaluating its federal regulatory stance on artificial intelligence.
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Published: 15 Jan 2024, 10:19 AM IST
