AI regulation imminent as IMF predicts a 40% global impact on jobs

In light of the significant opportunities that Artificial Intelligence (AI) holds for fostering sustainable growth and development in Africa, government has taken steps to oversee and regulate the technology’s utilisation within the country.

Currently, improved digital connectivity, growing data volumes, advanced algorithms and enhanced computing power are driving technological progress in AI.

Against this background, the Ministry of Communication and Digitalisation – with support from SMART Africa, GIZ FAIR Forward and the Future Society, developed a comprehensive policy document aimed at regulating AI usage in the country. Titled ‘Republic of Ghana National Artificial Intelligence Strategy 2023-2033’, the document is expected to be tabled before Cabinet soon.

“Ghana possesses a variety of advantages and strengths that can be utilised to facilitate development of the domestic AI ecosystem. Nevertheless, as much as AI wields positive transformative power, it also poses risks that could compromise security, safety, privacy and human rights, as well as lead to biased decision-making and data-abuse,” portions of the document sighted by the B&FT reads.

“It is therefore imperative for Ghana to ensure a responsible, inclusive and sustainable AI ecosystem. Consequently, data governance and policy are essential for fostering Ghana’s AI ecosystem and mitigating its many risks,” it added.

The strategic document includes insights derived from a diagnostic assessment (SWOT analysis) that identifies significant opportunities and constraints that AI developers in Ghana must contend with. The SWOT analysis revealed policy intervention areas required to accelerate, enable and scale Ghana’s AI ecosystem. As such, it serves as the foundation for policy recommendations centred on capitalising on the ecosystem’s strengths, overcoming its weaknesses and threats, and capitalising on unique opportunities.

AI to affect 40% of jobs globally

The fast progress of artificial intelligence has fascinated the world – generating both excitement and concern while leading to significant questions about its potential impact on the global economy. In a new analysis, the IMF examined potential impacts from AI on the global labour market. Many studies have already predicted that jobs will be replaced by AI.

According to the IMF findings, almost 40 percent of global employment is exposed to AI. “Historically, automation and information technology have tended to affect routine tasks, but one of the things that set AI apart is its ability to impact high-skilled jobs. As a result, advanced economies face greater risks from AI -but also more opportunities to leverage its benefits -compared with emerging markets and developing economies,” the findings said.

It said that in advanced economies, about 60 percent of jobs may be impacted by technology.

“Roughly half the exposed jobs may benefit from AI integration, thus enhancing productivity. For the other half, AI applications may execute key tasks currently performed by humans; which could lower labour demand, leading to lower wages and reduced hiring. In the most extreme cases, some of these jobs may disappear,” it said.

In emerging markets and low-income countries, by contrast, AI exposure is expected to be 40 percent and 26 percent respectively. These findings suggest emerging markets and developing economies face fewer immediate disruptions from AI.

At the same time, many of these countries do not have the infrastructure or skilled workforce to harness AI’s benefits – raising the risk that over time the technology could worsen inequality among nations, the IMF analysis said.

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