Artificial intelligence (AI) has a huge impact on the global labor market; according to a blog post by Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), AI will affect almost 40% of occupations globally. It’s possible that in the future, wages may decline and a large number of jobs will disappear.
Kristalina Georgieva’s take on AI affecting global market
Kristalina Georgieva, the managing director of the International Monetary Fund (IMF), emphasized in a blog post the enormous impact artificial intelligence (AI) is expected to have on the global labor market—roughly 40% of jobs globally. Georgieva underlined that because AI has the unique potential to impact high-skilled employment, industrialized countries will confront more opportunities and risks than emerging markets.
Upto 60% of occupations could be impacted
Based on IMF study, up to 60 percent of occupations in advanced economies could be impacted by AI. According to Georgieva, the integration of AI might lead to a rise in productivity for roughly half of these positions, while the other half might experience a decline. Artificial intelligence (AI) applications have the potential to replace humans in critical functions, hence lowering labor demand, resulting in reduced salaries, and in the worst circumstances, eliminating jobs.
Georgieva called on decision-makers to take a proactive approach to addressing the possible fallout from AI, with an emphasis on reducing potential societal unrest and inequality. She emphasized the significance of putting in place extensive social safety nets and providing retraining opportunities for those who are at risk of losing their jobs.
LinkedIn President also expressed worry
In a podcast interview from November of last year, LinkedIn Vice President Annesh Raman talked about these worries and expressed fear that the development of AI may diminish the value of technical talents while highlighting the growing significance of soft skills. Raman issued a warning over the dwindling duration of degrees and emphasized the significance of lifelong learning and flexibility in the face of changing employment markets. The IMF’s demand for comprehensive measures underscores the necessity of adopting proactive global plans to manage the revolutionary impact of AI on the workforce as it continues to advance.
The prediction might come true
Given that the impact on human jobs has already begun to materialize, the prediction may come true. It was recently revealed that, in response to the departure of Fitbit founders, Google had let go of over a thousand workers from divisions including voice assistance and hardware teams. Individuals working in engineering and services have also been affected. In addition, the corporation is rearranging a portion of its personnel due to the employment of AI tools.
Paytm representative has confirmed staff layoffs and even hinted that certain job roles may soon be eliminated by AI. “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,” the spokesperson said.
There were reportedly 1,000 employees that were let go by the business. In an effort to save expenses, a number of other digital behemoths, like Apple and Discord, have also let go of staff members.
By: Gursharan Kaur