The International Monetary Fund (IMF) has issued a call for robust fiscal policies worldwide to address the potential adverse effects of generative artificial intelligence (AI) on job markets and wealth distribution.
In a recent paper and accompanying blog post, IMF staff stressed the significant role of fiscal measures in ensuring a more equitable distribution of economic gains from technologies such as chatbots.
According to the IMF, unchecked adoption of generative AI, which powers chatbots like Microsoft's Copilot and OpenAI's ChatGPT, poses a risk of exacerbating job losses among white-collar professions. To counteract these potential negative impacts, governments are urged to consider implementing new fiscal measures aimed at both raising additional revenue and supporting workers who may be displaced.
"Fiscal policy has a major role to play in supporting a more equal distribution of gains and opportunities from generative AI," IMF staff stated. They highlighted the necessity of upgrading social-protection systems and tax frameworks globally. This includes enhancing unemployment insurance and investing in sector-specific training programs to equip workers with skills relevant to the AI-driven economy.
The IMF cautioned against implementing special taxes on AI products, arguing that such measures could hinder overall productivity growth. Instead, they suggested reevaluating corporate tax incentives that might accelerate job displacement and stressed the importance of strengthening taxes on capital income to mitigate rising wealth inequality.
