In a recent interview before the World Economic Forum in Davos, Switzerland, the International Monetary Fund’s managing director, Kristalina Georgieva, highlighted the significant impact that artificial intelligence (AI) is expected to have on the global job market. Georgieva mentioned that AI is projected to affect approximately 60% of jobs in advanced economies. However, developing countries may experience a lesser impact, with around 40% of jobs globally expected to be influenced by AI, according to a new IMF report.
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Georgieva emphasized that economies with a higher proportion of skilled jobs will likely face a more pronounced impact from AI. Despite the potential risks to job security, she also sees AI as a “tremendous opportunity” to enhance productivity levels and stimulate global economic growth.
The IMF report suggests that only half of the jobs impacted by AI will face negative consequences, with the remainder potentially benefiting from increased productivity due to AI integration. Georgieva noted the dual possibility of jobs disappearing altogether or being enhanced by AI, leading to improved productivity and higher income levels.
The report indicates that while emerging markets and developing economies may experience a smaller initial impact from AI, they are less likely to benefit significantly from the productivity gains associated with AI integration in the workplace. Georgieva stressed the importance of focusing on assisting low-income countries to capitalise on the opportunities presented by AI.
Looking ahead, the IMF is set to publish updated economic forecasts, indicating that the
The global economy is on track to meet previous projections. Georgieva described the global economy as being in a “tricky” position, where monetary policy is performing well, and inflation is decreasing, but challenges remain in finding the right balance.
As the world faces the economic aftermath of the COVID-19 pandemic, Georgieva anticipates 2024 to be a “very tough year” for fiscal policy globally. Countries will grapple with addressing debt burdens accumulated during the pandemic and rebuilding depleted financial buffers. Moreover, the year is marked by elections in about 80 countries, adding pressure on governments to make decisions that may impact spending and taxation policies.
Georgieva expressed concern that excessive spending by governments in 2024 could undermine progress in the fight against high inflation if monetary policy tightens and fiscal policy expands. She emphasized the need for a cautious approach to avoid prolonging economic challenges.
Despite her term as the head of the IMF coming to an end this year, Georgieva refrained from discussing her plans, stating her current focus is on the responsibilities at hand. She acknowledged the privilege of leading the IMF during turbulent times and expressed pride in the institution’s resilience.
While AI presents challenges to job security, Georgieva sees it as a transformative force that, if navigated carefully, can unlock productivity and contribute to a more positive global economic story.