“IMF Chief Warns of AI Impact: Jobs at Risk of Disappearance or Transformation”
In an exclusive interview with the International Monetary Fund’s managing director, Kristalina Georgieva, the complex impact of artificial intelligence (AI) on global employment has taken center stage. As the world grapples with the increasing integration of AI in various sectors, the IMF chief emphasized both the risks and opportunities associated with this technological advancement.
In an exclusive interview with the International Monetary Fund’s managing director, Kristalina Georgieva, the complex impact of artificial intelligence (AI) on global employment has taken center stage. As the world grapples with the increasing integration of AI in various sectors, the IMF chief emphasized both the risks and opportunities associated with this technological advancement.
Georgieva revealed that AI is anticipated to affect 60 percent of jobs in advanced economies, with developing countries facing a relatively smaller initial impact. The IMF’s report, published recently, suggested that approximately 40 percent of jobs globally are likely to be impacted by AI. Notably, higher-skilled jobs are expected to bear a more significant impact.
However, the report also highlighted a nuanced perspective: only half of the jobs affected by AI are predicted to face negative consequences. The remaining jobs may experience enhanced productivity, leading to potential income growth. Georgieva conveyed the message that AI could either result in job disappearance or job enhancement, underlining the dual nature of its influence on employment.
The IMF chief stressed the importance of addressing the uneven effects of AI on emerging markets and developing economies. While these regions may initially experience a smaller impact, they are less likely to benefit from the productivity gains associated with AI integration. Georgieva urged a concerted effort to assist low-income countries in seizing the opportunities presented by AI, emphasizing the need to navigate this transformative phase carefully.
As the global economy looks toward the future, the IMF is set to release updated economic forecasts later this month. Georgieva expressed cautious optimism, stating that the global economy is on track for a “soft landing,” but challenges persist. She acknowledged the delicate balancing act faced by policymakers in navigating fiscal and monetary policies to sustain economic growth while managing the risks associated with inflation.
Looking ahead, Georgieva warned of a challenging year for fiscal policy in 2024. With approximately 80 countries scheduled to hold elections, there is a concern that governments may be tempted to overspend, potentially undermining progress made in curbing inflation. The IMF chief emphasized the importance of maintaining a delicate equilibrium between fiscal and monetary policies to avoid prolonging economic uncertainties.
In a final note, Georgieva declined to comment on whether she intends to run for a second term as the head of the IMF, focusing on the immediate challenges at hand. As the world faces the transformative impact of AI on jobs and economies, the IMF underlines the critical importance of navigating this technological revolution with a keen eye on global productivity and economic stability.
Sources By Agencies
About The Author
