{"id":22257,"date":"2024-06-08T14:59:12","date_gmt":"2024-06-08T09:29:12","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=22257"},"modified":"2024-06-08T15:02:33","modified_gmt":"2024-06-08T09:32:33","slug":"the-global-economy-will-be-transformed-by-ai","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/the-global-economy-will-be-transformed-by-ai\/","title":{"rendered":"The global economy will be transformed by AI. AI is projected to impact nearly 40 percent of global jobs. | GS | Sociology Optional for UPSC Civil Services Examination | Triumph IAS"},"content":{"rendered":"<p>&nbsp;<\/p>\n<h1 style=\"text-align: center;\"><span style=\"color: #0000ff; font-family: 'book antiqua', palatino, serif;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-21264\" src=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/03\/Whats-in-News-150x56.png\" alt=\"\" width=\"515\" height=\"192\" srcset=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/03\/Whats-in-News-150x56.png 150w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/03\/Whats-in-News-300x113.png 300w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/03\/Whats-in-News-768x288.png 768w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/03\/Whats-in-News.png 996w\" sizes=\"auto, (max-width: 515px) 100vw, 515px\" \/><br \/>\n<\/span><\/h1>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_68 ez-toc-wrap-center counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >What's Inside this Blog!<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/triumphias.com\/blog\/the-global-economy-will-be-transformed-by-ai\/#The_global_economy_will_be_transformed_by_AI_AI_is_projected_to_impact_nearly_40_percent_of_global_jobs\" title=\"The global economy will be transformed by AI. AI is projected to impact nearly 40 percent of global jobs.\">The global economy will be transformed by AI. AI is projected to impact nearly 40 percent of global jobs.<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/triumphias.com\/blog\/the-global-economy-will-be-transformed-by-ai\/#Why_in_News\" title=\"Why in News\">Why in News<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/triumphias.com\/blog\/the-global-economy-will-be-transformed-by-ai\/#Sociology_Optional_Program_for_UPSC_CSE_2025_2026\" title=\"Sociology Optional Program\u00a0for \nUPSC CSE 2025 &amp; 2026\">Sociology Optional Program\u00a0for \nUPSC CSE 2025 &amp; 2026<\/a><\/li><\/ul><\/nav><\/div>\n<h1 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"The_global_economy_will_be_transformed_by_AI_AI_is_projected_to_impact_nearly_40_percent_of_global_jobs\"><\/span><span style=\"font-family: 'book antiqua', palatino, serif;\"><br \/>\n<span style=\"font-family: georgia, palatino, serif; color: #ff0000;\">The global economy will be transformed by AI. AI is projected to impact nearly 40 percent of global jobs.<\/span><br \/>\n<\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Why_in_News\"><\/span><span style=\"font-family: georgia, palatino, serif;\">Why in News<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">We are on the verge of a technological revolution that has the potential to kickstart productivity, increase global economic growth, and raise incomes worldwide. However, it also has the potential to displace jobs and widen inequality.<\/span><br \/>\n<span style=\"font-family: georgia, palatino, serif;\">The rapid progress of artificial intelligence has captured the world&#8217;s attention, sparking both enthusiasm and concern while prompting important questions about its potential impact on the global economy. The overall effect is hard to predict, as AI will have complex ripple effects on economies. What we can confidently state is that we will need to develop a set of policies to effectively harness the immense potential of AI for the betterment of humanity.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">Transforming the Essence of Employment\u00a0<\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">IMF staff have conducted a new analysis on the potential impact of AI on the global labor market. While many studies have predicted that AI will replace jobs, it is also likely to complement human work in many cases. The IMF analysis takes into account both of these factors.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">The results are significant: nearly <strong>40 percent of global employment<\/strong> is vulnerable to AI. Historically, automation and information technology have mainly affected routine tasks, but AI stands out for its ability to impact high-skilled jobs. Consequently, advanced economies face higher risks from AI, but also have more opportunities to utilize its benefits compared to emerging market and developing economies.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\"><em>In advanced economies, around 60 percent of jobs could be influenced by AI<\/em>. <strong>Approximately half of these jobs could benefit from AI integration<\/strong>, leading to increased productivity. However, the other half may see AI applications taking over tasks currently performed by humans, potentially reducing labor demand, leading to lower wages and decreased hiring. In extreme cases, some of these jobs may even disappear.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">In contrast, AI exposure is expected to be 40 percent in emerging markets and 26 percent in low-income countries. These findings indicate that emerging market and developing economies may experience fewer immediate disruptions from AI. However, many of these countries lack the infrastructure or skilled workforce to fully utilize the benefits of AI, increasing the risk of worsening inequality among nations over time.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">\u00a0<img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-22258\" src=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/06\/AI-MD-Blog-Chart-1-150x150.png\" alt=\"\" width=\"795\" height=\"795\" srcset=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/06\/AI-MD-Blog-Chart-1-150x150.png 150w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/06\/AI-MD-Blog-Chart-1-300x300.png 300w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/06\/AI-MD-Blog-Chart-1-768x768.png 768w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/06\/AI-MD-Blog-Chart-1.png 950w\" sizes=\"auto, (max-width: 795px) 100vw, 795px\" \/><\/span><\/p>\n<h3 style=\"text-align: justify;\"><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">AI has the potential to impact income and wealth inequality within countries. It is possible that we will see a division within income groups, where workers who are able to utilize AI experience an increase in their productivity and wages, while those who are unable to use AI fall behind. Studies indicate that AI can help less experienced workers improve their productivity at a faster rate. Younger workers may find it easier to take advantage of opportunities presented by AI, while older workers may struggle to adapt.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">T<strong>he impact on labor income will depend largely on how much AI complements high-income workers.<\/strong> If AI significantly complements higher-income workers, it could result in a disproportionate increase in their labor income. Additionally, the increased productivity from firms adopting AI may lead to higher returns on capital, further benefiting high earners. Both of these factors could contribute to widening inequality.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">In most cases, AI is expected to exacerbate overall inequality, which is a concerning trend that policymakers need to address proactively in order to prevent the technology from increasing social tensions. It is essential for countries to establish comprehensive social safety nets and provide retraining programs for workers who are vulnerable to the effects of AI. By doing so, we can make the transition to AI more inclusive, safeguarding livelihoods and reducing inequality.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">A world driven by AI that is inclusive<\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">AI is rapidly being incorporated into businesses worldwide, highlighting the importance of policymakers taking action. To assist countries in developing appropriate policies, the IMF has created an AIP preparedness Index that evaluates readiness in areas such as digital infrastructure, human capital and labor market policies, innovation and economic integration, as well as regulation and ethics. For instance, the human capital and labor market policies component considers factors such as education levels and labor market flexibility, as well as the percentage of the population covered by social safety nets. <strong>The regulation and ethics component assesses a country&#8217;s legal framework&#8217;s adaptability to digital business models and the existence of strong governance for effective enforcement.<\/strong> Using this index, the IMF evaluated the readiness of 125 countries and found that wealthier economies, including advanced and some emerging market economies, are generally better prepared for AI adoption than low-income countries, although there is significant variation among countries. Singapore, the United States, and Denmark achieved the highest scores on the index due to their strong performance across all four categories measured.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-22259\" src=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/06\/AI-MD-Blog-Chart-2-150x150.png\" alt=\"\" width=\"807\" height=\"807\" srcset=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/06\/AI-MD-Blog-Chart-2-150x150.png 150w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/06\/AI-MD-Blog-Chart-2-300x300.png 300w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/06\/AI-MD-Blog-Chart-2-768x768.png 768w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/06\/AI-MD-Blog-Chart-2.png 950w\" sizes=\"auto, (max-width: 807px) 100vw, 807px\" \/><\/span><\/p>\n<h3 style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">Emerging Possibilities of jobs in the Field of AI Development<\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">AI is the field dedicated to creating intelligent machines through science and engineering. As AI becomes more prevalent, it will generate fresh opportunities for individuals to construct, code, and uphold these intelligent machines. Presently, there is a vast number of job positions in AI within organizations worldwide, but there is a shortage of qualified workers to fill these roles.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">The expansion of AI will lead to the creation of new positions in engineering, software design, and programming. This means that for every individual who loses their job as a clerk, security agent, or factory worker, there will be an increase in the employment of data detectives, robotics engineers, machine managers, and programmers.<\/span><\/p>\n<p><em><strong>\u201cSuccess in creating AI would be the biggest event in human history. Unfortunately, it might also be the last, unless we learn how to avoid the risks.\u201d<\/strong><\/em><\/p>\n<p><em><strong>\u2014Stephen Hawkins<\/strong><\/em><\/p>\n<p><span style=\"color: #ff0000;\"><span style=\"font-size: 12px;\">Source From: IMF<\/span>\u00a0<\/span><\/p>\n<table style=\"width: 100%; border-collapse: collapse; background-color: #fcfbde;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\">\n<h3 style=\"text-align: justify;\"><strong>About Artificial Intelligence (AI)<br \/>\n<\/strong><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'book antiqua', palatino, serif;\">AI, or Artificial Intelligence, is a field of computer science that focuses on developing machines capable of functioning and responding like humans. It involves using computers to replicate human cognitive processes in order to make decisions. AI is intended to carry out a range of tasks, such as speech recognition, learning, planning, and problem-solving.<\/span><\/p>\n<div class=\"question-cat\">\n<p style=\"text-align: justify;\"><span style=\"font-family: 'book antiqua', palatino, serif;\"><strong style=\"font-size: inherit;\">Q.<\/strong><\/span><span style=\"font-family: inherit; font-size: inherit;\"><span style=\"font-family: 'book antiqua', palatino, serif;\"><span style=\"color: #ff0000;\"><a href=\"https:\/\/triumphias.com\/blog\/sociological-analysis-of-artificial-intelligence\/\"> Discuss how Artificial Intelligence can be used to meet India\u2019s socio-economic needs. (150 words)<\/a>\u00a0<\/span> \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<strong>UPSC 2019<\/strong><\/span><br \/>\n<\/span><\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr \/>\n<h1 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Sociology_Optional_Program_for_UPSC_CSE_2025_2026\"><\/span><span style=\"color: #ff0000; font-family: georgia, palatino, serif;\"><a style=\"color: #ff0000;\" href=\"https:\/\/triumphias.com\/sociology-new.php\" target=\"_blank\" rel=\"noopener\">Sociology Optional Program<\/a>\u00a0for<\/span><br \/>\n<span style=\"color: #ff0000; font-family: georgia, palatino, serif;\">UPSC CSE 2025 &amp; 2026<\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<table>\n<tbody>\n<tr>\n<td><a href=\"https:\/\/forms.gle\/JMABLisy4zaJuGG79\" target=\"_blank\" rel=\"noopener\" data-fancybox-group=\"post_image_0\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-22260 \" src=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/06\/Yellow-Modern-Did-You-Know-Instagram-kjjjjjjhj-150x150.png\" alt=\"\" width=\"379\" height=\"379\" srcset=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/06\/Yellow-Modern-Did-You-Know-Instagram-kjjjjjjhj-150x150.png 150w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/06\/Yellow-Modern-Did-You-Know-Instagram-kjjjjjjhj-300x300.png 300w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/06\/Yellow-Modern-Did-You-Know-Instagram-kjjjjjjhj-1024x1024.png 1024w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/06\/Yellow-Modern-Did-You-Know-Instagram-kjjjjjjhj-768x768.png 768w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/06\/Yellow-Modern-Did-You-Know-Instagram-kjjjjjjhj.png 1080w\" sizes=\"auto, (max-width: 379px) 100vw, 379px\" \/><\/a><\/td>\n<td><a href=\"https:\/\/forms.gle\/JMABLisy4zaJuGG79\" target=\"_blank\" rel=\"noopener\" data-fancybox-group=\"post_image_0\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-21897\" src=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/05\/2-150x150.png\" sizes=\"auto, (max-width: 395px) 100vw, 395px\" srcset=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/05\/2-150x150.png 150w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/05\/2-300x300.png 300w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/05\/2-1024x1024.png 1024w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/05\/2-768x768.png 768w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/05\/2.png 1080w\" alt=\"\" width=\"378\" height=\"378\" \/><\/a><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/forms.gle\/JMABLisy4zaJuGG79\" target=\"_blank\" rel=\"noopener\" data-fancybox-group=\"post_image_0\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-22108 \" src=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/02\/3-1-150x150.png\" alt=\"\" width=\"378\" height=\"378\" srcset=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/02\/3-1-150x150.png 150w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/02\/3-1-300x300.png 300w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/02\/3-1-1024x1024.png 1024w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/02\/3-1-768x768.png 768w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/02\/3-1.png 1080w\" sizes=\"auto, (max-width: 378px) 100vw, 378px\" \/><\/a><\/td>\n<td><a href=\"https:\/\/forms.gle\/JMABLisy4zaJuGG79\" target=\"_blank\" rel=\"noopener\" data-fancybox-group=\"post_image_0\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-22109 \" src=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/02\/4-1-150x150.png\" alt=\"\" width=\"378\" height=\"378\" srcset=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/02\/4-1-150x150.png 150w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/02\/4-1-300x300.png 300w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/02\/4-1-1024x1024.png 1024w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/02\/4-1-768x768.png 768w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/02\/4-1.png 1080w\" sizes=\"auto, (max-width: 378px) 100vw, 378px\" \/><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table>\n<tbody>\n<tr>\n<td><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-21900 \" src=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/05\/5-13-150x150.png\" sizes=\"auto, (max-width: 401px) 100vw, 401px\" srcset=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/05\/5-13-150x150.png 150w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/05\/5-13-300x300.png 300w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/05\/5-13-1024x1024.png 1024w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/05\/5-13-768x768.png 768w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/05\/5-13.png 1080w\" alt=\"\" width=\"378\" height=\"378\" \/><\/td>\n<td><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-21901 \" src=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/05\/6-10-150x150.png\" sizes=\"auto, (max-width: 386px) 100vw, 386px\" srcset=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/05\/6-10-150x150.png 150w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/05\/6-10-300x300.png 300w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2024\/05\/6-10-1024x1024.png 1024w, 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