WASHINGTON (TND) — Artificial intelligence continues to develop at a rapid rate with the potential to impact every area of our lives – including jobs.
A new report from the International Monetary Fund warns that AI will impact almost 40% of jobs around the world, whether that be replacing them or complimenting them.
This, of course, will differ geographically.
Advanced economies face greater risks, but also more opportunities to see AI’s benefits, compared to developing markets.
The report specifically notes that AI may impact about 60% of jobs in advanced economies; in around half of those instances, workers can expect to benefit from it. On the other hand, technology will affect just 26% of jobs in low-income countries.
AI will also likely worsen overall inequality between countries, as well as possibly affect income and wealth inequality within countries.
Out of 125 countries analyzed, Singapore, the U.S. and Denmark are the best equipped to adopt AI based on four categories: digital infrastructure, human capital and labor-market policies, innovation and economic integration and regulation and ethics.
Speaking of the economy, AI also has an impact on the stock market.
The largest U.S. technology company stocks – called the “Magnificent 7” – did extremely well in 2023, ending the year with gains between 48% and 249%.
For context, those seven companies are Microsoft, Google, Amazon, Nvidia, Meta, Tesla and Apple, many of which are key players in AI development.
For example, Amazon shares gained more than 80% in 2023, as the company advanced in the AI space. Similarly, Microsoft shares gained nearly 60%.
Nvidia stands out, with the largest share movement compared to the others. In fact, on several occasions, shares saw double-digit growth in one single day.
AI is expected to continue playing a pivotal role in the stock market, not just for this year – but for the rest of the decade.
UBS predicts that tech prices will go up because of AI, with forecasted AI industry revenues of $420 billion by 2027 (a 72% annual growth rate).
This will ultimately drive up those stock prices even further, which is good news for the overall market because information technology stocks currently represent the biggest sector of the S&P 500 index, at just under 30%.
When you add in communications services stocks – many of which are connected to technology – the group represents more than 37%.
