The International Monetary Fund (IMF) has warned that the global economy is likely to face a “painful transition” as artificial intelligence (AI) causes “large-scale” people to lose their jobs for long periods of time.
“New generative AI technologies hold great potential for boosting productivity and improving public service delivery, but the speed and scale of transformation also raises concerns about job losses and widening inequalities,” the IMF wrote. In Monday’s blog post.
In an accompanying paper published Monday, the agency said countries should strengthen social protection nets and invest in education and training to help workers adapt to the transition to AI.
“A proper distribution of benefits and opportunities is necessary not only to protect the vulnerable and ensure social cohesion, but also to make the most of the opportunities that the AI generation brings,” the paper reads.
“By providing financial support during unemployment, facilitating the acquisition of new skills, and creating a safety net, Social Security can help individuals adapt to changes in the job market,” the report continues.
In its report, the IMF suggested countries reconsider corporate tax incentives that encourage rapid labor outflows, raise taxes on capital income to mitigate rising inequality, and impose taxes to offset carbon emissions from energy-hungry AI servers.
Following the huge success of OpenAI’s ChatGPT tool, major tech companies such as Google and Meta are racing to release their own AI models, spurring rapid development of the technology.
More than a third of U.S. workers said they were worried that AI would lead to fewer hours, less pay, or even loss of their jobs. About 36% said they were worried that AI would take their jobs, and an additional 43% said they thought AI would reduce the number of jobs in their industry.
