Almost 40 per cent of jobs around the world are exposed to artificial intelligence (AI), with women and younger people expected to reap the benefits of AI automation, new research has found.
The International Monetary Fund (IMF) released its report Gen-AI: Artificial Intelligence and the Future of Work over the weekend, predicting the winners and losers in what some suggest will be a new Industrial Revolution with the growing prevalence of AI.
“AI promises to increase productivity, while threatening to replace humans in some jobs and to complement them in others,” the report says.
Unlike reports that have come before, the IMF’s report found women have greater exposure to AI technologies than their male counterparts. The international body suggested AI presents both greater risks and greater opportunities for women in the workforce.
The research also found college-educated workers and younger people are better prepared for AI automation in the workforce and will be better equipped to move between jobs that could be replaced or complemented with AI technologies. AI automation places older people and workers who are not college-educated at risk of job displacement.
The IMF’s research found AI is more prevalent in advanced economies: around 60 per cent of jobs involve some form of AI, compared to 26 per cent exposure in developing economies. Worldwide, AI is present in almost 40 per cent of jobs.
In their research, the IMF recognises both the benefits and the consequences of AI. On one hand, AI replacing or complementing workers will improve productivity and therefore generate greater profits for workplaces. AI automation will also create thousands of new jobs and revolutionise the labour market.
On the other hand, AI technologies replacing workers poses great risks for employees needing to find new work. While previous waves of automations, such as the Industrial Revolution in the 19th century, predominately displaced low-income and middle-income workers the most, the IMF suggests AI automation also risks the replacement of high-skill and high-income jobs.
How AI impacts the labour market depends on the strength of the economy, the IMF’s report found. Advanced economies, the IMF’s research suggests, will feel a short-term hit from AI automation, as many workers could be replaced or complemented by AI technologies imminently. However, in the long run, advanced economies are in a better position to benefit from AI automation because of greater opportunities for workers to technologically upskill overtime.
Meanwhile, in developing countries that still rely heavily on manual labour and traditional industries, AI automation will be less disruptive in the short term future. However, overtime, AI automation will widen the gap between advanced and developing countries even more.
AI has the potential to reshape the global economy. Will it be a job-killing monster or a productivity superpower? New IMF staff research explores these issues in depth.
— IMF (@IMFNews) January 15, 2024
Blog: https://t.co/LMpupRBcBt
Paper: https://t.co/xzTe6Vakt5 pic.twitter.com/r71NtOK69C
The IMF suggests AI in workplaces will benefit higher-wage earners more than lower-wage earners. This is expected to exacerbate labour income inequality within economies even further.
Last year, an Australian report from Roy Morgan found 57 per cent of survey respondents said AI will produce more challenges than it will benefits in Australian society.
The report found women were the most sceptical of AI automation, with 62 per cent agreeing it creates more problems than it solves.
According to the Roy Morgan survey, one in five Australians believe that advancement of AI risks human extinction in just 20 years.
The Australian government’s AI ethics framework outlines eight principles to promote responsible use of AI in Australian society. These principles aim to achieve better outcomes with AI, reduce the risks of negative impacts and practice the highest standards of ethical business and good governance.