(Repost) Bloomberg -- Artificial Intelligence Will Affect Almost 40% of Jobs, IMF Says

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Artificial intelligence will affect almost 40% of jobs, IMF says. Artificial intelligence will affect almost 40% of global jobs, with advanced economies facing greater exposure than emerging markets and low-income countries, according to an international monetary fund analysis. In most scenarios, AI will likely worsen overall inequality, a troubling trend that policymakers must proactively address to prevent the technology from further stoking social tensions, IMF Managing Director Kristalina Georgieva said in a blog post on the study. AI's income inequality effect will largely depend on how much the technology complements high earners. More productivity from high-income workers and companies would boost capital returns, widening the wealth gap, Georgieva said. Countries should provide comprehensive social safety nets and retraining programs for vulnerable workers, she said. While there's potential for AI to fully replace some jobs, the more likely scenario is that it'll complement human work, according to the analysis. Advanced economies may have about 60% of jobs affected, more than emerging and low-income countries. Georgieva's take on artificial intelligence coincides with the meeting of global business and political leaders at the World Economic Forum in Davos, Switzerland, where AI is a topic of discussion. Companies have been throwing cash at the emerging technology, sometimes sparking concern among employees about the future of their roles. One example is BuzzFeed Inc., which announced plans to use AI to help with content creation and closed its core news department, laying off more than 100 staffers. Read more, Regulate AI? How U.S., EU and China are going about it. Quick, take. The European Union reached a tentative deal in December on legislation setting out safeguards on AI, while the U.S. is still weighing its federal regulatory stance. The dismal science is upbeat on AI's potential. Goldman lifts U.S. global long-term growth forecasts on AI boost. Women workers to be hurt more than men by AI wave, McKinsey says. KKR, Bain Capital Plough and New Asia data centers on eight.

Key Points: IMF's Analysis on AI's Impact on Jobs

1. Widespread Impact on Jobs: The International Monetary Fund (IMF) analysis indicates that artificial intelligence will affect nearly 40% of global jobs. Advanced economies are at greater risk of AI's impact compared to emerging markets and low-income countries.

2. Increased Inequality Concerns: AI is likely to exacerbate overall inequality. According to IMF Managing Director Kristalina Georgieva, this trend is troubling and requires proactive measures by policymakers to avoid escalating social tensions.

3. Disparity in Income Effect: The effect of AI on income inequality largely depends on how the technology complements high earners. Increased productivity in high-income workers and companies could lead to higher capital returns, thereby widening the wealth gap.

4. Need for Social Safety Nets and Retraining: Georgieva emphasizes the necessity of comprehensive social safety nets and retraining programs for workers who are vulnerable to AI's impact.

5. AI Complementing Human Work: The IMF analysis suggests that while AI has the potential to fully replace some jobs, it is more likely to complement human work. Advanced economies might see about 60% of jobs affected, more than in emerging and low-income countries.

6. Global Discussions at Davos: The topic of AI aligns with discussions among global business and political leaders at the World Economic Forum in Davos, Switzerland.

7. Corporate Investment and Employee Concerns: Companies are heavily investing in AI, raising concerns among employees about the future of their roles. For instance, BuzzFeed Inc. plans to use AI for content creation, leading to the closure of its core news department and layoffs.

8. Regulatory Landscape: The European Union reached a tentative deal in December on AI legislation with safeguards, while the U.S. is still determining its federal regulatory stance.

9. Economic Forecasts and Gender Disparity: Goldman Sachs uplifts U.S. and global long-term growth forecasts due to AI's potential. However, studies like those by McKinsey highlight that women workers might be more adversely affected by the AI wave than men.