RIYADH: Artificial intelligence is set to affect 40 percent of jobs globally and risk increasing labor inequality, according to the IMF chief.

Kristalina Georgieva, managing director of the Washington-based lender, explained it was crucial for countries to establish social safety nets and offer retraining programs for vulnerable workers.

She said: “In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality.”

In a blog post analysis on Jan. 14, Georgieva highlighted that in advanced economies about 60 percent of jobs may be impacted by AI and that “roughly half the exposed jobs may benefit from AI integration, enhancing productivity.”

She added: “For the other half, AI applications may execute key tasks currently performed by humans, which could lower labor demand, leading to lower wages and reduced hiring.”

Georgieva said: “In the most extreme cases, some of these jobs may disappear.”