IMF Chief says AI impact on labour forces to be like ‘tsunami’: Report

JNS: International Monetary Fund Managing Director Kristalina Georgieva has warned that the impact of Artificial Intelligence (AI) on the global labor market could be as disruptive as a “tsunami.”

According to media reports, Georgieva stated that AI is expected to affect approximately 60% of jobs in advanced economies and 40% worldwide within the next two years.

Speaking at an event in Zurich organized by the Swiss Institute of International Studies, affiliated with the University of Zurich, Georgieva emphasized the urgent need to prepare individuals and businesses for this impending transformation.

She stressed the importance of timely readiness, stating, “We have very little time to get people ready for it, businesses ready for it.”

While acknowledging the potential for AI to significantly enhance productivity, Georgieva also highlighted the risks of misinformation and increased inequality. She cautioned that while AI could lead to economic growth if managed effectively, it could also exacerbate societal disparities.

Georgieva also addressed the global economy’s vulnerability to shocks, citing recent events such as the COVID-19 pandemic and the conflict in Ukraine.

Despite these challenges, she expressed confidence in the economy’s resilience, noting that although more shocks are expected, the global economy is not currently in a recession.

The event also featured remarks from Swiss National Bank Chairman Thomas Jordan, who praised Switzerland’s progress in combating inflation.

Leave a Reply

Your email address will not be published. Required fields are marked *