AI's Impact on Society: Boosting Productivity but Widening Inequality
Published on: May 29, 2025
The advancement of artificial intelligence (AI) brings a potential surge in productivity but raises concerns over job displacement and inequality. This article explores the dual impact of AI on the global economy and the importance of strategic policy-making to harness AI's benefits.
IMF's analysis reveals nearly 40% of global employment is susceptible to AI, with advanced economies facing higher risks and opportunities. AI's ability to impact high-skilled jobs differentiates it from previous technologies, creating a need to balance productivity enhancements with potential job losses.
AI could exacerbate income and wealth inequality within countries. High-income workers may see disproportionate benefits, while others fall behind. Policymakers must address this by establishing comprehensive social safety nets and retraining programs to make the AI transition inclusive.
The IMF's AI Preparedness Index assesses countries' readiness for AI adoption. Wealthier economies generally score higher, highlighting the need for investments in digital infrastructure and workforce in developing countries. The AI era, with its challenges and opportunities, calls for global cooperation to ensure inclusive growth.