Previous research by international labour organisation shows that various jobs will likely be replaced rather than improved by AI.
Explore how AI adoption can widen income inequality, affecting job demand and wages, while highlighting the need for skill development and infrastructure.
The International Monetary Fund (IMF) has warned that the increasing use of artificial intelligence (AI) could exacerbate income inequality on a global scale. The adoption of AI is likely to reduce labour demand and wages for workers in sectors that are not highly augmentable by AI, pushing them towards poverty. On the other hand, tech-savvy and younger workers who can harness AI to enhance their productivity may earn increased wages, creating a wider pay gap. The IMF also highlighted that wealthier countries, despite being more exposed to AI-related disruptions, are better prepared to benefit from AI adoption, while low-income countries are underprepared. Analysis: This article emphasizes the potentially negative impact of AI on income inequality at both the individual and country level. It suggests that while AI has the potential to enhance productivity and increase wages for some workers, it could also lead to job losses and reduced wages for others, widening the income gap. Additionally, the article highlights the importance of digital infrastructure and skill development for countries to harness the benefits of AI. Overall, it presents a nuanced view of the potential implications of AI adoption, emphasizing the need for measures to mitigate inequality.
https://www.theeastafrican.co.ke/tea/business/imf-tech-could-worsen-income-inequality-4497728
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