The IMF report coincides with growing concern over the potential of AI to disrupt labour markets. Getty Images
The IMF report coincides with growing concern over the potential of AI to disrupt labour markets. Getty Images
The IMF report coincides with growing concern over the potential of AI to disrupt labour markets. Getty Images
The IMF report coincides with growing concern over the potential of AI to disrupt labour markets. Getty Images

Countries need to take 'agile approach' in age of AI, IMF says


Kyle Fitzgerald
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A new report from the International Monetary Fund says countries' fiscal policies have a leading role to play in ensuring an equal distribution of the gains made from generative artificial intelligence.

The report, released on Monday, comes as concerns grow over the potential of the rapidly developing technology to disrupt labour markets.

AI holds the promise to significantly boost productivity growth and dramatically improve the delivery of public services, including in health and education,” said Era Dabla-Norris, one of the report's authors.

“But this promise also comes with considerable uncertainty, and the sheer scale and speed of the transformation runs the risk of disrupting labour markets and increasing inequality.”

To navigate the era of AI, the report recommends governments take an agile approach to prepare for disruptive scenarios.

“Decisions made now by policymakers will shape the evolution of AI for decades to come and its impacts for decades to come,” Ms Dabla-Norris told reporters.

“So with the right fiscal policies, we can harness the vast potential of AI and ensure that it delivers broader gains to humanity.”

The latest IMF modelling found stronger unemployment insurance coupled with re-skilling programmes can help cushion some of the short-term unemployment blows from AI.

The authors also said social safety nets need to be adapted in a situation where prolonged job losses from AI are possible.

A previous report found 40 per cent of global employment is exposed to AI, with the figure increasing to 60 per cent in advanced economies. That number shrinks to 40 per cent and 26 per cent for emerging markets and low-income countries, respectively.

Ms Dabla-Norris said that while these economies are less exposed to AI, they are also less prepared to adjust to the new technology.

“Many of these countries tend to have a larger share of the population that is not in employment or in education or training, which raises a concern about their ability to adjust to technological transitions,” she said.

The report also waded into the debate on how to tax AI, advising against a specific tax on investment AI.

It steered clear of suggesting a so-called robot tax – which aims to de-incentivise replacing workers and machines – and a specific tax on investment in AI over concerns that this could hamper productivity.

“In fact, countries already have scope to strengthen existing tax systems instead of adding on new taxes that if ill-designed could may do more harm than good,” Ms Dabla-Norris said.

Instead, the authors focused placing greater focus on taxing capital income, arguing gains from AI could further widen the global wealth gap.

The authors suggested the global minimum wealth tax, a supplemental tax on excess profits and stronger taxes on capital gains could help mitigate income inequality.

The authors also said automatic exchange of information would allow governments to more effectively tax capital incomes.

“We think that these are options that countries can explore,” said Ruud de Mooij, one of the report's co-authors.

The authors said decisions made by governments today have the opportunity to shape the impact of AI for decades, with the positive effects of the new technology now being felt.

“With the right fiscal policies, we can harness the vast potential of AI and ensure that it delivers broader gains to humanity,” Ms Dabla-Norris said.

The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

Tips to stay safe during hot weather
  • Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
  • Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
  • Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
  • Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
  • Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
  • Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
  • Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

If you go

The flights

Etihad and Emirates fly direct from the UAE to Chicago from Dh5,215 return including taxes.

The hotels

Recommended hotels include the Intercontinental Chicago Magnificent Mile, located in an iconic skyscraper complete with a 1929 Olympic-size swimming pool from US$299 (Dh1,100) per night including taxes, and the Omni Chicago Hotel, an excellent value downtown address with elegant art deco furnishings and an excellent in-house restaurant. Rooms from US$239 (Dh877) per night including taxes. 

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Directed by: Ashwiny Iyer Tiwari
Starring: Kriti Sanon, Ayushmann Khurrana, Rajkummar Rao
Three and a half stars

MATCH INFO

Champions League last 16, first leg

Tottenham v RB Leipzig, Wednesday, midnight (UAE)

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Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

In numbers

Number of Chinese tourists coming to UAE in 2017 was... 1.3m

Alibaba’s new ‘Tech Town’  in Dubai is worth... $600m

China’s investment in the MIddle East in 2016 was... $29.5bn

The world’s most valuable start-up in 2018, TikTok, is valued at... $75bn

Boost to the UAE economy of 5G connectivity will be... $269bn 

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Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

Torque: 175Nm

Price: From Dh98,800

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The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

Sui Dhaaga: Made in India

Director: Sharat Katariya

Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav

3.5/5

The specs

Engine: four-litre V6 and 3.5-litre V6 twin-turbo

Transmission: six-speed and 10-speed

Power: 271 and 409 horsepower

Torque: 385 and 650Nm

Price: from Dh229,900 to Dh355,000

Ms Yang's top tips for parents new to the UAE
  1. Join parent networks
  2. Look beyond school fees
  3. Keep an open mind
Updated: June 17, 2024, 1:49 PM`