An IMF Staff Discussion Note, published on 14 January 2024, focuses on Generative AI and its potential to reshape the world of work, our labour markets, and global economy as a whole.
The report looks at the differences between advanced economies and less developed ones, particularly in the way they are projected to be able to mitigate the impact of AI on their work lives. And in fact, consistent patterns concerning AI exposure emerge: with some groups better poised to make use of the benefits AI can bring (like educated women, younger people) than others (older people, those with less education attainment, etc). Lower-skilled occupations are much more likely to be impacted by AI’s effects, posing further risks for rising inequality.
A second scenario on capitalising on the impact of AI looks at boosting productivity gains. If these victories are sufficient, there may be an income surge across the workforce. Here, the report imagines the burden of regulation falling on more advanced economies (who also play a central role in labour reallocation). Developing countries and emerging economies on the other hand, should prioritise investment in digital infrastructure and digital skills if they want to catch up and make the most of the benefits AI holds.