As the world grapples with the rapid advancements in artificial intelligence, many experts are predicting a future where jobs are vastly automated, leaving millions of workers struggling to adapt. However, one prominent economist is urging caution, suggesting that the impact of AI on jobs might be much smaller than expected.
AI’s Limited Potential
Nobel Laureate and MIT economist Daron Acemoglu believes that current AI tools are likely to impact only about 5% of jobs and contribute around 1% to global GDP. According to Acemoglu, unlike earlier technologies that reshaped production, like electricity or the internet, AI has not yet produced tools that deeply transform how goods and services are created.
The IMF’s Warning
However, the International Monetary Fund (IMF) has issued a stark warning, suggesting that AI could affect nearly 40% of jobs globally. The report notes that while AI has the potential to boost productivity and economic growth, it also poses significant risks of disruption, particularly in sectors where tasks are routine or cognitive in nature. Advanced economies are likely to face higher exposure due to the greater prevalence of white-collar roles.
Why the Discrepancy?
So, why the discrepancy between Acemoglu’s estimate and the IMF’s warning? The key lies in the current state of AI technology. While AI has made significant strides in recent years, it still lags behind in terms of its ability to truly transform the job market. AI systems remain relatively primitive, costly to maintain, and are hitting significant roadblocks in their development.
A Call to Action
As the debate around AI’s impact on jobs continues to rage on, it’s essential for policymakers, businesses, and individuals to approach the issue with a clear head. Rather than panicking about the potential for widespread job displacement, we should focus on developing the skills and strategies necessary to thrive in an AI-driven economy. By doing so, we can ensure that the benefits of AI are shared by all, and the risks are mitigated. The future of work is uncertain, but with a balanced approach, we can create a brighter tomorrow for all.
Originally published on https://www.businesstoday.in/latest/economy/story/dont-be-taken-by-the-hype-mit-economist-says-ai-likely-to-impact-just-5-of-jobs-485407-2025-07-20
Originally published on https://www.businesstoday.in/latest/economy/story/dont-be-taken-by-the-hype-mit-economist-says-ai-likely-to-impact-just-5-of-jobs-485407-2025-07-20
