The AI revolution, rather than solve industry issues, is threatening to replace 40% of all jobs and deepen inequality across the world, according to a study by the International Monetary Fund.
According to the study, recent developments in AI put many high-skilled jobs "exposed" to AI integration with advanced economies being more at risk by up to 60%.
In contrast, low-income countries and emerging markets range below 20% on AI exposure to their job market.
One possible reason for the discrepancy proposes that developing countries have yet to achieve infrastructure and the industry to fully harness the use of AI.
This can be reflected in leading AI development countries like the US experiencing layoff trends and slower job growth amid the AI boom in 2023.
Also Read: IT Jobs Suffer Slow Growth Amid AI Boom in 2023
IMF: Older Generations More at Risk with AI Era
IMF managing director Kristalina Georgieva raised concerns on the labor discrepancy, especially between younger and older generations, that may happen towards adopting AI technology.
According to Georgieva, older people will have a harder time finding jobs soon if they struggle to adapt to the new technology.
A recent study in 2023 already revealed that many people from older generations have an adverse feeling with AI products due to "functional and socio-emotional mismatches."
Streamlining AI across all work industries is expected to put older workers at a further disadvantage.
Georgieva calls for policymakers and governments to "proactively address to prevent the technology from further stoking social tensions.'
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IMF Pushes for AI-Inclusive Work Industry
In response to the growing application of AI technology, the IMF proposed regulatory frameworks across advanced economies to better handle the following years with AI.
The organization has released the AI Preparedness Index to assess the readiness of 125 countries in the face of emerging technology and how to handle its adoption.
As for developing countries, the IMF recommended establishing a "strong foundation through investments in digital infrastructure and a digitally competent workforce."
