America’s Washington, D.C. Artificial intelligence (AI) is expected to affect 60% of jobs in mature economies, according to a startling disclosure made by Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF). Just before she left for the World Economic Forum (WEF) in Davos, Switzerland, Georgieva shared this realization with AFP. A recent IMF analysis that emphasizes the significant impact of AI on the global labor market supports the disclosure.

Work Effects in All Economies

Georgieva highlighted the broad implications of the technology by saying that “AI will have an impact on 60% of jobs in advanced economies and some emerging markets.” The impact varies between economies, with emerging markets experiencing a 40% impact and low-income countries experiencing a 26% impact, according to an IMF analysis released on Sunday. All things considered, AI has an impact on about 40% of jobs worldwide.

According to the IMF analysis, while half of the employment that AI will affect will suffer, the other half could gain from higher productivity and future income growth. Georgieva issued a warning, saying that the impacted workforce may face difficulties if certain jobs completely vanish. But she also mentioned how AI might be used to supplement some jobs, which would raise worker productivity and pay.

Worries About Labor Replacement

In response to the impending difficulties, Solon has proposed a law to govern AI that specifically addresses concerns about labor replacement. Concerns about artificial intelligence (AI) taking over human jobs have led to debates and legislative actions to guarantee appropriate AI use.

The widening wealth gap and digital divide between nations are issues brought up in the IMF study. Developing countries and emerging markets are less likely to experience the first effects of AI, but they are also less likely to reap the benefits of this game-changing technology. The research emphasizes that older workers are particularly vulnerable to the changes brought about by AI, which further emphasizes the necessity of taking preventative action.

In order for workers to meet the difficulties presented by AI, Georgieva emphasized the significance of reskilling and upskilling. With the words, “Your job may disappear altogether—not good—or artificial intelligence may enhance your job, so you actually will be more productive and your income level may go up,” she advised workers to adjust to the changing environment.

Guidelines for Policy and AI Adoption

The IMF believes that there is a significant chance to solve the issues raised by AI through policy recommendations. Georgieva emphasized the need to concentrate on assisting low-income nations in moving more quickly to take advantage of the prospects that artificial intelligence presents. “We must focus on helping low-income countries, in particular, to move faster to be able to catch the opportunities that artificial intelligence will present,” she stated.

Georgieva underlined that although AI may seem intimidating, it also offers enormous opportunities for everyone, despite worries and difficulties. Recognizing the benefits of AI and its inevitable development, she urged acceptance. Artificial intelligence is, therefore, a little unsettling. Georgieva emphasized the need for a proactive and inclusive strategy to fully utilize AI’s potential for global economic development in her concluding remarks. “But it is also a tremendous opportunity for everyone,” she said