The IMF is warning that AI could impact 40 percent of people jobs, either complementing or replacing them.
It is suggested that about half of these workers will benefit from AI, however the other half will see lower salaries and “in the most extreme cases, some of these jobs may disappear”, according to the IMF.
The IMF have also stated that the technology could worsen inequality between nations and within societies.
Kristalina Georgieva, the IMF’s managing director, said: “We are on the brink of a technological revolution that could jumpstart productivity, boost global growth and raise incomes around the world. Yet it could also replace jobs and deepen inequality.”
"It is crucial for countries to establish comprehensive social safety nets and offer retraining programmes for vulnerable workers," she continued.Georgieva revealed that AI has the potential to impact well paid jobs, she said: “Historically, automation and information technology have tended to affect routine tasks, but one of the things that sets AI apart is its ability to impact high-skilled jobs."
Georgieva explained that in most scenarios AI will worsen overall inequality and urges policymakers to address the situation to prevent AI from furthering social tensions.
“It is crucial for countries to establish comprehensive social safety nets and offer retraining programmes for vulnerable workers. In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality," Georgieva said.
The Washington, DC-based fund said AI can be associated with “productivity gains” and that in order to see those gains they require consistrent reskilling and upskilling.
It emerged last week that Meta is cutting 20 per cent of its Irish workforce as they attempt to save on their funds so they can invest into AI. Seperately, the Irish Times reported that software group Oracle has told the Irish Government that they plan to axe some 150 Irish jobs, about 15 per cent of its workforce in the Republic, as they plan to save funds which is related to AI.
Speaking to journalists on Monday, IMF mission chief to Ireland Yan Sun said that the republic of Ireland was in a good position to benefit from AI, however 40% of irish jobs would be complemented or replaced in the process.
“This is at a global level,” she said. “I think, of course, the number [...] could be higher [than 40 per cent] for some advanced countries. Definitely, Ireland’s exposure to AI transformation is higher than most advanced countries," Sun said.
They suggested that the Coalition will need to look for a way to support households in the aftermath of inflation caused by the US-Israeli war on Iran. However they stress that these measures should only be temporary and targeted at the most vulnerable rather than broad measures like “tax cuts, subsidies and price controls”.
