16 Jan, 2024 @ 14:31
1 min read

How AI threatens up to 60% of jobs in Spain and other advanced economies, according to stark warning from the IMF

(Front row left-right) French Minister for Economy Bruno Le Maire, German Economy and Climate Minister Robert Habeck, President of the European Commission Ursula von der Leyen, US Vice-President Kamala Harris, Prime Minister Rishi Sunak, Italy's Prime Minister Giorgia Meloni, United Nations Secretary-General Antonio Guterres and Australian Deputy Prime Minister Richard Marles during the AI safety summit, the first global summit on the safe use of artificial intelligence, at Bletchley Park in Milton Keynes, Buckinghamshire. Picture date: Thursday November 2, 2023.

THE International Monetary Fund (IMF) has issued an alarming warning about the potential impact of artificial intelligence (AI) on jobs.

According to a recent IMF study, up to 60% of employment in advanced economies such as Spain could be impacted by the development of AI. 

The impact is estimated to be lower in developing and low-income economies, with 40% and 26% of jobs being affected respectively. 

However, there remains optimism about the potential positive impacts of AI – the IMF study estimates that while advanced economies are prone to the greatest risks derived by AI due to its impact on employment, they are also in a privileged position to capitalise on its benefits.

Thus, the IMF expects that roughly half of the jobs exposed to AI in advanced economies will actually benefit from its development.

The IMF has warned against the dangers of AI, with an estimated 60% of jobs in advanced economies set to be impacted by the developing technology. Credit: Cordon Press.

The managing director of the IMF, Kristilina Georgieva, commented: “We are on the precipice of a technological revolution that has the potential to boost productivity, accelerate global growth and elevate incomes across the world. However, it could also replace jobs and exacerbate inequality.” 

In developing and low-income economies, the impact of AI on jobs is expected to initially be less significant. 

However, many such countries lack the infrastructure and labour force to feel the full benefits of AI.

Georgieva, who became chief of the IMF in 2019, warned: “In the majority of scenarios, AI will probably worsen general inequality.”

This is likely to be dependent on to what extent AI compliments or replaces high-income jobs – it could lead to a disproportionate increase in pay, productivity, and returns on invested capital, favouring those with higher incomes.

“It is crucial that countries establish rigorous social security nets and offer re-skilling initiatives to vulnerable workers,” added Georgieva, before departing for the World Economic Forum in Davos, Switzerland.

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Ben Pawlowski

Ben joined the Olive Press in January 2024 after a four-month stint teaching English in Paraguay. He loves the adrenaline rush of a breaking news story and the tireless work required to uncover an eye-opening exclusive. He is currently based in Barcelona from where he covers the city, the wider Catalunya region, and the north of Spain. Send tips to ben@theolivepress.es

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