AI ‘Could Impact 40 Percent Of Jobs Worldwide’: UN

AI is poised to disrupt the labor market, and discrepancies with the technology exist between developed and developing nations, the report highlights.

AI could impact as much as up to 40 percent of jobs across the globe, according to a report released Monday by UN Trade and Development (UNCTAD).

The report stated that a study estimated that AI would affect 40 percent of global employment. While UNCTAD did not cite the specific study, a report last year from the International Monetary Fund also reported AI’s impact on 40 percent of the global workforce.

“Workforces in advanced economies are at greater risk since more of their jobs involve cognitive tasks,” UNCTAD’s report continued and looked into other aspects of AI’s potential impact on global business and labor.

AI In Knowledge-Intensive Sectors

While previous emerging technologies have primarily affected working, blue-collar industries like manufacturing, AI has been more widely adopted in knowledge-intensive sectors including finance, information technology, marketing and sales.

When it comes to knowledge-based labor, AI algorithms were found to be most effective at tasks involving clearly defined outcomes. The report found that algorithms were less beneficial for tasks related to creativity, social intelligence or complex decision-making.

The report cited an example of AI being used to diagnose psychiatric illnesses, “which tend to have complex and historical causes that are difficult to capture in data. For such tasks, AI may be no more productive than existing technologies or human workers.”

The AI Divide

There is a significant divide in AI development between countries. “Over the period 2000–2023, China and the United States were responsible for around one third of global publications in AI and 60 per cent of patents,” according to report.

Developing nations are also lagging behind in the AI race. With the exception of China and India, developing nations have had “limited progress” with AI and “the distance from developed countries has increased,” the report revealed.

However, the report authors cited a benefit for developing nations over those with more advanced economies in terms of AI:

“Workforces in advanced economies are at greater risk since more of their jobs involve cognitive tasks. However, these economies are also better positioned than emerging and low-income economies to capitalize on the benefits of AI.

“For example, the United Kingdom has a significant share of employment in professional and managerial occupations that are highly exposed to AI augmentation, as well as in clerical support and technician occupations that could be exposed to AI-related automation. Developed countries are in general more likely than developing countries to face more immediate labor market adjustments and an increase in wage inequality,” the report read.

Worker-Centric Approach To AI

To enable human workers to thrive in the “rapidly evolving technological landscape,” the report advises employers to place greater emphasis on workers and their professional growth. To do so, employers should invest in education and skills, as well as labor protections and worker empowerment.

“Workers whose jobs are subject to AI augmentation can also benefit from upskilling programs to acquire new complementary competencies,” the report read.

Read UNCTAD’s report in its entirety here.