Generative artificial intelligence, such as ChatGPT, holds tremendous potential. However, it could exacerbate labor disruptions and inequality if not properly managed. Experts emphasize that governments worldwide must put forth more effort to protect workers.
According to the Financial Times, the International Monetary Fund (IMF) issued a report on the 17th warning that AI could also reduce jobs in high-skilled professions, unlike past technologies. The IMF urged nations to take measures like improving experimental insurance.
The IMF predicts that generative AI has enormous potential to enhance productivity and advance the provision of public services. However, this potential also raises serious concerns within the workforce.
The IMF advised governments worldwide to invest more in worker protection to prepare for this future. They recommend putting more attention on providing lifelong learning so workers can adapt to rapidly changing future job markets. They also suggested sector-specific education and retraining programs to help workers transition to new tasks and sectors. Era Dabla-Norris, the IMF Deputy Director of the Fiscal Affairs Department, explained, “Older workers may lack the skills necessary in the AI era and may need more time to acquire new technologies. The transition could be painful for these workers.” She added, “We must cushion the costs of these transitions and maintain social cohesion.”
However, the IMF does not deem a special tax on AI as an appropriate source of funding for these government policies as it could hinder productivity growth from AI. Instead, they proposed increasing taxes on capital gains, profits, and corporate and income taxes that have decreased over the past few decades to offset growing wealth inequality. In the AI era, capital is expected to be concentrated in a few companies, which will strengthen their market dominance and accelerate a “winner-takes-all market.”
Considering the uncertain future of AI, the IMF added that governments should adopt a “flexible approach to prepare for potentially very disruptive scenarios.” Dabla-Norris said that due to the global spread of AI, “it will be more important than ever for countries to cooperate.”
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