- UK employment faces artificial intelligence impact
- Inequality may worsen
- Retraining crucial for inclusivity
A recent study by the IMF warns that more than half of all employment in the United Kingdom may be impacted by artificial intelligence shortly.
Anticipations suggest that AI will impact 40% of all occupations worldwide. In contrast, the impact is expected to be even more pronounced in developed economies such as the United Kingdom, where 60% of all laborers will be affected.
According to the IMF, even in cases where AI has positive effects, computer automation is likely to exacerbate wealth inequality.
artificial intelligence will increase the salaries of those in highly compensated occupations, whereas lower-paid positions face a substantial risk of layoffs and pay reductions.
The exponential progress of artificial intelligence (AI) in recent years has often been likened to the Industrial Revolution in terms of its capacity to affect employment. artificial intelligence, in contrast to the invention of the steam engine, poses a threat of substituting exceptionally skilled intellectual labor.
Managing Director of the IMF and co-author of the study, Kristalina Georgieva, asserts, “We are on the precipice of a technological revolution that has the potential to ignite global growth, increase incomes, and accelerate productivity.” It could, however, eliminate employment and exacerbate inequality.
Prior research on the effects of AI on employment has emphasized the degree to which a position is “exposed” to artificial intelligence. This relates to the number of job-related responsibilities an artificial intelligence could perform.
Employment sectors that are not exposed to artificial intelligence, those that are exposed but will benefit from AI, and those that are exposed but will not be assisted by AI are divided into three categories in this new study.
Occupational Vulnerability to artificial intelligence
Most clerical activities can be automated, making secretaries and clerks vulnerable to AI displacement. This indicates a negative ‘complementarity’ and a high degree of exposure.
Conversely, judges are also heavily exposed to AI because a substantial portion of the textual analysis associated with their profession could be mechanized. However, given the improbability of computers replacing judges, AI will likely enhance their productivity rather than supplant them.
The occupational sectors most susceptible to the impacts of AI, whether advantageous or detrimental, in the United Kingdom consist of professionals, managers, and administrative support staff. Nevertheless, technical service and clerical support positions are the most likely to be eliminated by AI.
While professionals and administrators are highly susceptible to the effects of AI, their reactions are more likely to be positive. These findings confirm the Department of Education’s prediction that AI would replace white-collar employment. According to the study, accountants, consultants, and psychologists were among the occupations most likely to be replaced by computers.
Conversely, roofers, athletes, and steel erectors were deemed to be least vulnerable to the impacts of artificial intelligence. The IMF predicts that these disparities will likely exacerbate inequality in the United Kingdom and internationally.
“We may see polarisation within income brackets,” says Ms. Georgieva. “Workers who can leverage AI will likely see an increase in wages and productivity, while those who cannot will fall behind.”
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AI’s Global Socioeconomic Impact
According to the research, Professions associated with high exposure levels are prone to wage reductions and job losses. However, occupations characterized by significant complementarity and high levels of exposure will witness wage growth in tandem with the increased productivity AI brings.
As higher-paying positions are already optimally positioned to capitalize on AI, this is likely to exacerbate the income disparity between the most affluent and least affluent members of society. Ms. Georgieva asserts, “In most scenarios, AI will likely exacerbate global inequality. This is a concerning development that policymakers must proactively confront to avert the technology from exacerbating social tensions.”
Additionally, the study shows that artificial intelligence will positively impact women and those with a collegiate degree. These patterns will be replicated globally. Economies most suited to utilize AI will experience accelerated expansion, while less developed nations will be left behind.
AI Impact on Global Workforce
According to the report, only 26% of occupations in low-income countries are exposed to AI. This is because a significant proportion of the workforce is engaged in manual labor and agriculture. For instance, over two-thirds of all employment in India remains unaffected by AI. This implies that job displacement due to computer automation is improbable. However, the positive impacts of automation on the economy are likely to be constrained.
Singapore and the United States rank first on the IMF’s classification of artificial intelligence preparedness. This classification measures how well a nation’s policies prepare it to maximize the benefits of AI. Japan and Germany are only marginally ahead of the United Kingdom, which ranks fifth; India and other emerging economies lag.
“Nations must provide retraining programs and establish comprehensive social safety nets for vulnerable workers,” asserts Ms. Georgieva. By doing so, the transition to AI can be more inclusive, safeguard livelihoods, and mitigate inequality.
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