IMF Director Georgieva: AI's Tsunami Effect on Employment

According to Reuters, Kristalina Georgieva, Director of the International Monetary Fund (IMF), has warned that artificial intelligence (AI) will impact a significant portion of the global job market in the near future. Specifically, she stated that within the next two years, AI will affect 60% of jobs in developed economies and 40% of all positions worldwide. Speaking at an event in Zurich, Georgieva likened the impact of AI to a tsunami on the job market and emphasized the urgency of preparing individuals and businesses for this impending change.

Georgieva highlighted the potential for AI to substantially increase productivity if effectively managed. However, she also cautioned that its widespread adoption could exacerbate issues such as misinformation and inequality within society. Additionally, Georgieva noted that the global economy has become more vulnerable to shocks in recent years, citing factors such as the COVID-19 pandemic and the conflict in Ukraine.

Despite these challenges, Georgieva offered some positive insights. She noted that despite concerns about climate change and other economic pressures, there is currently no global recession. Furthermore, she pointed out that inflation, which had been a significant concern, is showing signs of weakening across many regions.