The report "Gen-AI: Artificial Intelligence and the Future of Work" by IMF staff members Mauro Cazzaniga, Florence Jaumotte, Longji Li, Giovanni Melina, Augustus J. Panton, Carlo Pizzinelli, Emma Rockall, and Marina M. Tavares explores the potential impact of artificial intelligence (AI) on the global economy, particularly in labor markets. Advanced economies are more exposed to AI and better positioned to benefit from it, while emerging market and developing economies may experience less immediate disruptions but are less prepared to capitalize on AI's advantages. The report highlights that AI exposure patterns vary by demographic groups, with women and college-educated individuals being more exposed but also better poised to reap AI benefits, while older workers may struggle to adapt. Labor income inequality may increase if AI complements high-income workers, but productivity gains could surge for most workers if managed effectively. The report recommends that advanced and more developed emerging market economies focus on upgrading regulatory frameworks and supporting labor reallocation, while emerging market and developing economies should prioritize digital infrastructure and skills development. The analysis is supported by empirical data and model-based projections, offering insights into how AI will reshape the labor market and the policies needed to mitigate potential challenges.The report "Gen-AI: Artificial Intelligence and the Future of Work" by IMF staff members Mauro Cazzaniga, Florence Jaumotte, Longji Li, Giovanni Melina, Augustus J. Panton, Carlo Pizzinelli, Emma Rockall, and Marina M. Tavares explores the potential impact of artificial intelligence (AI) on the global economy, particularly in labor markets. Advanced economies are more exposed to AI and better positioned to benefit from it, while emerging market and developing economies may experience less immediate disruptions but are less prepared to capitalize on AI's advantages. The report highlights that AI exposure patterns vary by demographic groups, with women and college-educated individuals being more exposed but also better poised to reap AI benefits, while older workers may struggle to adapt. Labor income inequality may increase if AI complements high-income workers, but productivity gains could surge for most workers if managed effectively. The report recommends that advanced and more developed emerging market economies focus on upgrading regulatory frameworks and supporting labor reallocation, while emerging market and developing economies should prioritize digital infrastructure and skills development. The analysis is supported by empirical data and model-based projections, offering insights into how AI will reshape the labor market and the policies needed to mitigate potential challenges.