In a recent blog post, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), underscored the substantial impact of artificial intelligence (AI) on the global job market. The IMF predicts that around 40 percent of jobs worldwide will be affected by AI, with advanced economies facing a potentially higher risk of up to 60 percent job disruption.
Georgieva emphasized the dual nature of AI's impact on employment. While some jobs may experience increased productivity through AI integration, others could face a downturn as AI applications take over tasks currently performed by humans. This shift may lead to reduced labor demand, lower wages, and even job losses in extreme cases.
The IMF director urged policymakers to proactively address the potential consequences of AI, focusing on mitigating inequality and social tensions. She recommended implementing comprehensive social safety nets and providing retraining programs for workers vulnerable to job displacement.
While Georgieva expects emerging markets and developing economies to experience fewer immediate disruptions from AI, she stressed the importance of a global strategy to navigate the evolving landscape of work. The IMF's warning aligns with concerns raised by Goldman Sachs, estimating that over 300 million jobs could be disrupted by AI.
Already in the early days of 2024, the prediction seems to be materializing, as reports indicate job impacts. Google recently laid off over 1,000 employees in departments like voice assistance and hardware teams, with Fitbit founders departing. Engineering and services areas were also affected, with indications of workforce reorganization due to AI tools being employed.
Paytm, too, confirmed employee layoffs, hinting at AI's role in eliminating certain job roles. A company spokesperson stated, "To mitigate the impact on its workforce, Paytm is actively incorporating AI-led automation to replace certain roles, particularly in areas affected by lay-offs." Reports indicate that 1,000 workers were let go by the company. As AI continues to advance, the call for comprehensive measures by the IMF highlights the need for proactive global strategies to navigate the transformative impact on the workforce.