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Artificial intelligence will affect 40 per cent of the world’s jobs. Poorer countries will suffer more – IMF

Artificial intelligence (AI) will affect almost 40 per cent of jobs worldwide, replacing some and complementing others. This is according to a study by the International Monetary Fund on the potential impact of AI on the global labour market, informs .

The IMF says that nearly 40 per cent of the world’s workers are affected by AI or will be affected in the near future. Historically, automation and information technology has tended to affect routine tasks, but one of the things that sets AI apart is its ability to affect high-skilled jobs. As a consequence, developed countries face greater risks associated with AI, but are also better positioned to capitalise on its benefits than developing countries.

In advanced economies, about 60 per cent of jobs could be impacted by AI. That said, about half of jobs could benefit from AI integration, increasing productivity. For the other half, AI applications could perform key tasks now performed by humans, which could reduce labour demand, leading to lower wages and reduced hiring. In extreme cases, some of these jobs may disappear.

In developing countries, the situation is somewhat different. It is expected that 40 per cent of jobs will benefit from the introduction of AI, while 26 per cent of workers will be affected. These findings would seem to indicate that such countries are expecting fewer problems due to AI. But at the same time, many of these countries don’t have the infrastructure or skilled labour to take advantage of AI. And that raises the risk that the technology could increase inequality between countries over time.

The IMF offers an index

To help countries put the right policies in place, the IMF has developed the AI Readiness Index, which measures readiness in areas such as digital infrastructure, human capital and labour market policies, innovation and economic inclusion, and AI regulation and ethics.

Using the index, IMF staff assessed the readiness of 125 countries to adopt AI technologies. The results show that wealthier economies tend to be better prepared than low-income countries. Singapore, the U.S. and Denmark received the most points in the index, based on their high scores in all four categories tracked.

Guided by the AI Readiness Index, developed countries should prioritise innovation and AI integration while developing a robust regulatory framework. This approach will create a safe and responsible AI environment, helping to maintain public trust in AI. For developing countries, the priority should be to lay a solid foundation by investing in digital infrastructure and a digitally competent workforce, the IMF believes.