The IMF has warned that generative AI could cause significant labor disruptions and exacerbate inequality. Unlike past technologies, AI threatens higher-skilled jobs, prompting calls for better workforce preparation, such as enhanced unemployment insurance. The rise of AI, highlighted by the launch of ChatGPT, has spurred regulatory actions, with the EU's AI Act and California’s AI safety bill leading the charge. Concerns also exist over AI's market concentration among a few big tech firms. Countries like India and Argentina are offering incentives to attract AI investments. The IMF estimates AI could impact 40% of global jobs, stressing the need for international cooperation and agile government responses to manage these changes.