International Monetary Fund (IMF) Managing Director Kristalina Georgieva revealed that artificial intelligence (AI) is projected to impact 60 percent of jobs in advanced economies. Speaking to AFP before heading to the World Economic Forum (WEF) in Davos, Switzerland, Georgieva cited an IMF report published on the subject, highlighting the anticipated consequences of AI on global employment.
According to Georgieva, advanced economies and some emerging markets are expected to witness a 60 percent impact on jobs, while this figure decreases to 40 percent for emerging markets and 26 percent for low-income countries. The IMF report, discussed in the interview, indicates that nearly 40 percent of global employment is exposed to AI.
The report outlines that half of the jobs affected by AI will face negative consequences, while the remaining may experience enhanced productivity and potential income growth due to AI advancements.
Georgieva cautioned that jobs may either disappear or be improved through AI, emphasizing the importance of policy prescriptions to address these concerns. She particularly stressed the need to assist low-income countries in swiftly adapting to the opportunities presented by AI, acknowledging both the challenges and opportunities associated with the evolving technology.
The IMF report indicates that while AI will initially have a lesser impact on emerging markets and developing economies, they are less likely to benefit significantly from the advantages offered by AI, potentially exacerbating digital divides and income disparities between countries. The report also notes that older workers may be more vulnerable to the changes brought about by AI.
Georgieva acknowledged the mixed sentiments surrounding AI, describing it as both “a little scary” and “a tremendous opportunity for everyone.” She urged countries to embrace the inevitable advancements in AI and work towards leveraging its potential benefits.
