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AI is set to revolutionise the global economy, particularly in labor markets, presenting both opportunities and obstacles. Advanced economies, with their focus on cognitive-intensive roles, face higher exposure to AI but also stand to benefit more. In contrast, emerging market and developing economies lag behind in readiness, potentially exacerbating income inequality. The impact of AI on labor income inequality hinges on the extent of displacement versus complementarity with high-income workers. Priorities for harnessing AI's potential vary based on development levels, with advanced economies focusing on innovation and regulation, while less prepared economies prioritise digital infrastructure and skills development. Regardless, ensuring inclusivity through social safety nets and retraining programs is imperative for all economies. At this event, we discussed strategies for maximising AI benefits while mitigating its potential negative consequences on income distribution and labor markets.