AI to impact 40% jobs globally, 60% in advanced economies: IMF Chief

In a recent interview with AFP, International Monetary Fund (IMF) Managing Director Kristalina Georgieva discussed the significant impact of artificial intelligence (AI) on global job security. Georgieva emphasized that while AI is likely to affect 60% of jobs in advanced economies, it also presents a "tremendous opportunity" to boost productivity and fuel global growth.

According to a newly released IMF report, around 40% of jobs globally are expected to be impacted by AI, with higher-skilled jobs facing a more substantial impact. However, Georgieva pointed out that only half of the jobs influenced by AI will see negative consequences; the rest may experience enhanced productivity and income growth due to AI integration in the workplace.

"The effects of AI on jobs will be uneven, with developing countries facing a smaller initial impact but also less likely to benefit from enhanced productivity," said Georgieva. She emphasized the need to assist low-income countries in catching the opportunities presented by artificial intelligence.

While acknowledging the potential for job displacement, Georgieva highlighted the positive aspects, stating that AI provides a "tremendous opportunity for everyone." The IMF chief urged a focus on unlocking productivity globally to propel the world economy forward.

Georgieva also addressed the challenges facing the global economy in 2024. She anticipates a "very tough year" for fiscal policy worldwide, with many countries addressing debt burdens accumulated during the Covid-19 pandemic and rebuilding depleted buffers. With approximately 80 countries holding elections, there is added pressure on governments to balance spending and taxes to gain popular support.

The concern at the IMF is that excessive spending by governments could undermine the progress made in combating high inflation. Georgieva emphasized the delicate balance needed in monetary and fiscal policies to avoid a prolonged economic challenge.

Looking ahead, Georgieva, whose term at the IMF is set to end this year, remained focused on her current responsibilities. She declined to comment on whether she intends to run for a second term, stating, "Let me do what is in front of me right now." Despite the challenges, she expressed pride in the IMF's ability to navigate turbulent times and cope effectively with global economic shifts.

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