Washington: International Monetary Fund Managing Director Kristalina Georgieva warns that AI could exacerbate inequality without proactive measures, urging policymakers to address this growing challenge. The report coincides with discussions at the World Economic Forum in Davos, where global leaders are grappling with the implications of AI on the workforce.

In a blog post, IMF Managing Director Kristalina Georgieva expressed concern over the potential exacerbation of overall inequality due to AI’s influence on the job market. The report recommends proactive measures, including comprehensive social safety nets and retraining programs, to counterbalance the technology’s potential adverse effects.

The IMF analysis reveals that advanced economies may witness about 60% of jobs affected, surpassing the impact on emerging and low-income countries. However, the report highlights a nuanced outlook, indicating that only half of the jobs influenced by AI might experience negative consequences.

While AI’s initial impact on labour markets in emerging and developing economies might be more negligible, the IMF predicts these regions are less likely to benefit from enhanced productivity. Georgieva emphasizes the importance of supporting low-income countries to seize the opportunities presented by AI.