Artificial intelligence is set to affect nearly 40% of all jobs, according to a new analysis by the International Monetary Fund (IMF).

The IMF’s managing director, Kristalina Georgieva, warns that AI will likely worsen inequality in most scenarios. AI will affect around 60% of jobs in advanced economies, enhancing productivity in half. However, it could lower labor demand, affect wages, and even eliminate jobs. In low-income countries, AI will affect only 26% of jobs due to lack of infrastructure and skilled workforces.

The IMF suggests that higher-income and younger workers may see a disproportionate increase in wages after adopting AI, while lower-income and older workers may fall behind. To make the AI transition more inclusive, countries should establish comprehensive social safety nets and offer retraining programs for vulnerable workers. AI is facing increased regulation worldwide, with legislation taking effect by 2025.