IMF calls for more social protection amid job losses due to AI

The International Monetary Fund considered that tax measures for social protection have a key role to play in balancing the risks posed by artificial intelligence, especially the increase in inequality.

According to what the Fund stated in a memorandum, artificial intelligence may lead to job loss among eligible professions, adding, “To confront this situation, governments must allocate new revenues to finance the social safety net for those who lose their jobs.”

“Tax policy has a key role to play in supporting a more equitable distribution of the gains and opportunities associated with generative artificial intelligence,” the memo said. “But this requires major changes in tax and social protection systems around the world,” the Fund added.

The International Monetary Fund in particular called for increasing unemployment insurance benefits and investing in training to prepare workers “for jobs in the age of artificial intelligence.”

The Fund opposes imposing a specific tax on artificial intelligence proposed by researchers, considering that this would affect productivity growth. On the contrary, it is proposed to address tax loopholes that encourage the elimination of jobs.

The International Monetary Fund also confirmed its support for increasing taxes on capital income “to balance the increasing wealth gap.”