KABANDA CHULU
Washington, DC
THE International Monetary Fund (IMF) has called for a careful balance of policies to tap into the potential of artificial intelligence (AI), which is projected to take over 40 percent of jobs around the world.
In a new analysis titled “AI will transform the global economy: Let’s make sure it benefits humanity’, the IMF states that AI could also affect income and wealth inequality within countries.
“We may see polarisation within income brackets, with workers who can harness AI seeing an increase in their productivity and wages and those who cannot fall behind. Research shows that AI can help less-experienced workers enhance their productivity more quickly. Younger workers may find it easier to exploit opportunities, while older workers could struggle to adapt,” it reads in part.
“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. AI will affect almost 40 percent of jobs around the world, replacing some and complementing others, so we need a careful balance of policies to tap its potential.”
It states that the rapid advance of AI has captivated the world, causing both excitement and alarm, and raising important questions about its potential impact on the global economy.
“The net effect is difficult to foresee, as AI will ripple through economies in complex ways. What we can say with some confidence is that we will need to come up with a set of policies to safely leverage the vast potential of AI for the benefit of humanity,” the report states.
In another analysis under the title “Reshaping the nature of work”, the IMF staff examined the potential impact of AI on the global labour market.
“Many studies have predicted the likelihood that jobs will be replaced by AI. Yet we know that in many cases AI is likely to complement human work.
The analysis captures both these forces, whose findings are striking, especially that almost 40 percent of global employment is exposed to AI,” it states.
“Historically, automation and information technology have tended to affect routine tasks, but one of the things that sets AI apart is its ability to impact highskilled jobs. As a result, advanced economies face greater risks from AI, but also more opportunities to leverage its benefits, compared with emerging markets and developing economies.”
In advanced economies, about 60 percent of jobs may be impacted by AI.
“Roughly half the exposed jobs may benefit from AI integration, enhancing productivity. For the other half, AI applications may execute key tasks currently performed by humans, which could lower labour demand, leading to lower wages and reduced hiring. In the most extreme cases, some of these jobs may disappear,” it reads in part.
Commenting on the report, IMF managing director Kristalina Georgieva said technological advancements affect many sectors of the economy, ranging from manufacturing to healthcare and financial services.
“We have been transitioning to a new digital economy, and now artificial intelligence is likely to dramatically accelerate the fourth industrial revolution. This brings huge potential benefits but also risks. This shows that AI could affect up to 40 percent of jobs across the world and 60 percent in advanced economies,” she said.
“It could enhance workers’ productivity but also threaten 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.
Both the climate and the digital transformation require coordinated global efforts to manage risks and capture the benefits they create.”…https://enews.daily-mail.co.zm/welcome/home
