IMF Chief Warns: AI will impact jobs like a “tsunami”!!

KAKALI DAS

With each AI advancement comes the recurring question: Will it replace our jobs?

This time, the head of the International Monetary Fund has affirmed that AI will impact the job market. Furthermore, she depicted a more concerning scenario.

The IMF chief said AI will impact the job market like a “tsunami“. The choice of words is intriguing – a tsunami devastates everything, wiping out structures and lives. Will AI have a similar effect on the job market?

The IMF chief provided some statistics. Over the next two years, AI could influence 60% of jobs in the developed world and 40% globally. These figures are alarming, not only due to their magnitude but also because of the short timeframe of just 2 years. This leaves little time for adaptation in the job market, necessitating rapid preparation.

The IMF Chief has said, “We have very little time to get people and businesses ready for it. AI can boost how much we produce and make things more efficient. But it also might increase false information and make income gaps wider.”

There are three key takeaways from this. Firstly, it’s not entirely negative. While the IMF predicts that 60% of jobs will be affected, “affected” doesn’t necessarily equate to being replaced. In half of these instances, AI will enhance productivity, making jobs easier and potentially creating new ones.

The AI revolution is projected to generate over 97 million new jobs, leading to the secondtakeaway. While some jobs will indeed be lost, Goldman Sachs predicted last year that AI could replace 300 million full-time positions. Among these are roles like coding, as advanced AI models can write complex code faster than humans. Additionally, in fields such as customer service, AI-powered systems are capable of engaging in conversations and troubleshooting problems more efficiently than humans.

The CEO of TCS issues a stark warning, stating, “AI could kill Indian call centres in a year.“

GPT-4o, OpenAI’s new artificial intelligence model was recently launched in a live stream by OpenAI. GPT-4o is said to be faster than the earlier versions. It can translate languages, identify emotions, have a conversation, even flirts, and much more.

It’s like a life-like voice assistant – a multi-talented AI model. It is seen aiding a conversation – the man and the woman speak in Italian and English – the model translates back and forth maintaining the flow of the conversation. It gauges the emotions of a man, it could also identify objects.

What really stands out is the speed GPT-4o response to queries – in about 320 milliseconds. Do you know who else has that response time? Humans does. Does that mean it’s finally time for machines to take over? Not exactly though. It’s merely a demo – let’s see how it performs in the real world.

However, because of ChatGPT the fate of tutors may mirror that of call centres. GPT-4o can teach mathematics, solve equations. Users can ask questions, draw diagrams and figures, and even generate question papers. Many educators already utilize ChatGPT for teaching purposes.

A professor in Virginia actively encourages her students to utilize ChatGPT for various purposes. She suggests AI can serve as a debate partner for some and even function as a job recruiter for others.

Currently, AI is enhancing the productivity of teachers, but the question remains: how long until it either replaces or significantly diminishes their role?

Screenshot 20240518 231436 — OpenAI Signs Content Deal with Reddit for ChatGPT

And that brings us to the third point: AI has the potential to increase inequality. Take the coding example – previously, humans were needed to write the code, but now they’re only required to verify it. This shift could significantly lower wages in certain professions. In turn, it might widen the wage gap, impacting not just individuals but entire countries.

Affluent nations are likely to adapt to AI more rapidly, given their greater financial resources for investment in the technology. However, poorer countries may struggle to keep pace due to limited resources, potentially resulting in a widening technology and wage gap.

To summarize, there are three key factors at play: the creation of new jobs, the loss of many existing jobs, and the emergence of a new catalyst for financial inequality. This broadly outlines how artificial intelligence will impact the job market.

The crucial question is: how can one prepare for it? With AI advancing more rapidly than anticipated, time is of the essence. If you’re already in the job market, begin incorporating AI tools and finding ways to integrate them into your work. Utilize AI to gain a competitive advantage over your peers.

But what if you’re not yet in the workforce? It’s time to put your thinking cap on. Since AI is projected to create 97 million new jobs, take the initiative to research and discover what these roles entail.

The World Economic Forum has provided several examples, such as AI trainers who design and create these models, data curators responsible for gathering data to train these models, ethic officers who serve as moral guides for AI systems, and AI content creators who elucidate the functioning of these technologies.

These are all emerging roles. The critical task is to identify and prepare for them swiftly. ChatGPT came out in late 2022, initially perceived as revolutionary. Yet, in less than two years, it has surpassed expectations. It can now recognize items in your environment, handle your shopping, conduct interviews, and even tutor children. So, one can only imagine the capabilities of the next generation of AI.

It seems the IMF Chief’s assessment rings true – AI is indeed akin to a tsunami approaching the job market. The warning has been issued, and the looming waves are becoming evident. It’s imperative to act and prepare for its impact.

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