The IMF has shared an update / analysis on how artificial intelligence will affect Asia’s economies.
According to the blog post from the IMF, AI may widen inequality, but policymakers can “counteract this with more effective social safety nets, reskilling programs, and regulations to promote ethical use of the technology.”
Tristan Hennig and Shujaat Khan noted in a blog post shared by the IMF that Asia-Pacific’s economies are likely to “experience labor market shifts because of artificial intelligence, with advanced economies being affected more.”
The IMF’s blog post pointed out that about half of all jobs in the region’s advanced economies are “exposed to AI, compared to only about a quarter in emerging market and developing economies.”
However, as shown in their latest Asia-Pacific Regional Economic Outlook, there are also “more jobs in the region’s advanced economies that can be complemented by AI, meaning that the technology will likely enhance productivity rather than replace these roles altogether.”
The IMF’s update also mentioned that the “concentration of such jobs in Asia’s advanced economies could worsen inequality between countries over time.”
Although around 40 percent of jobs in Singapore are rated as “highly complementary to AI, the share is just 3 percent in Laos.”
AI could also “increase inequality” within countries.
The update shared by the IMF also mentioned that most workers at risk of displacement in the Asia-Pacific region “work in service, sales, and clerical support roles.”
Meanwhile, workers who are more likely to benefit from AI “typically work in managerial, professional, and technician roles that already tend to be among the better paid professions.”
The IMF update also finds that women are “more likely to be at risk of disruption from AI because they are more often in service, sales, and clerical roles.”
Men, by contrast, are more “represented in occupations that are unlikely to be impacted by AI at this stage, like farm workers, machine operators, and low-skill elementary workers.”
According to IMF’s blog post, effective social safety nets “combined with reskilling programs for affected workers will be critical to achieve an inclusive AI transition.”
The IMF also mentioned in the update that education and training to help the workforce leverage what AI makes possible will “be especially relevant in Asia’s emerging economies, given that they have relatively few jobs in which AI could make workers more productive.”
It will also help displaced workers transition to new roles and “support research and development that enhances innovation.”
In addition, governments should set regulations “that promote ethical AI use and data protection.”
The IMF’s update concluded that doing so can “mitigate the risks of AI-induced disruptions and better capitalize on the opportunities for economic growth and improved productivity.”
