'30% at risk' | IMF has sobering message about AI devastation on the jobs market

At the AI for Good Global Summit, Gita Gopinath, the IMF's First Deputy Managing Director, delivered a stark warning about the potential economic risks posed by artificial intelligence.

While AI promises significant benefits, including improved health outcomes and scientific advancements, Gopinath emphasized that its widespread adoption could also exacerbate economic crises, particularly by disrupting labor markets.

AI's impact on jobs

Gopinath highlighted that during economic downturns, companies may accelerate automation to cut costs, leading to job losses.

"Nearly 90% of automation-related job losses in the U.S. have occurred in the first year of recessions," she stated, referencing research by Jaimovic and Siu.