International criticism: Artificial intelligence threatens wages and jobs globally
A recent research study by the International Monetary Fund revealed that the rapid rise of artificial intelligence technologies has already begun to cause radical changes to wage structures and job opportunities, particularly in professions that can be automated, calling for urgent government intervention.
The IMF urged governments worldwide to provide stronger social safety nets and tangible support for workers at risk of job losses due to this technological revolution. In this context, Kristalina Georgieva, Managing Director of the IMF, stated: “Policymakers must fundamentally rethink the design of educational curricula to ensure that young people entering the labor market are equipped to use artificial intelligence as a tool rather than competing with it in a losing battle.”.
Global context and unprecedented challenges
Georgieva's remarks came in a blog post published ahead of the World Economic Forum's annual meeting in Davos, Switzerland, where world leaders and executives gather to discuss major economic challenges. She added, "The risks extend beyond purely economic considerations; work gives dignity and meaning to people's lives, and that is what makes the transformation brought about by artificial intelligence so important and socially sensitive.".
Historically, the world has witnessed previous industrial revolutions that led to the automation of manual labor, but the artificial intelligence revolution is different in that it targets cognitive tasks and highly skilled office jobs, thus putting a wider segment of the workforce under the threat of change.
Comprehensive analysis going beyond the US market
The fund's findings were based on a meticulous analysis of millions of job postings and employee profiles across six diverse economies: the United States, the United Kingdom, Germany, Denmark, Brazil, and South Africa. This expanded sample size is significant, as most previous research focused exclusively on the United States, and now provides a more comprehensive view of the impact of technology in different economic environments.
Economic impact: between rising wages and job losses
The analysis concluded that one in 10 job postings today requires at least one new skill that did not exist a decade ago, such as skills related to advanced information technology or managing digital marketing algorithms.
The report pointed to an economic paradox; the increased demand for broad technical skills has had a positive impact on wages, with jobs requiring new skills receiving a wage premium of between 3 and 3.4% in advanced economies such as the United States and Britain.
However, the fund warned of the dark side of this shift; when examining jobs that focus exclusively on artificial intelligence skills, it found that high demand did not translate into an increase in overall employment, but often led to "technological substitution," causing job losses in sectors that new technologies could fully perform.
Future implications
Economists believe that this shift could widen the gap between advanced economies capable of absorbing these technologies and developing economies that may fall behind, as well as deepen income inequality within a single country between those who have skills to deal with artificial intelligence and those who lack them.
