IMF Chief Recognises AI Job Risks While Emphasising 'Tremendous Opportunity'

International Monetary Fund (IMF) Managing Director Kristalina Georgieva highlighted the dual impact of artificial intelligence (AI) on global job security. In an interview, Georgieva stated that AI is expected to affect 60 per cent of jobs in advanced economies and around 40 per cent globally. While acknowledging the risks, she emphasised AI's "tremendous opportunity" to boost productivity and global growth.

Georgieva noted the nuanced impact on employment, mentioning that AI could either lead to job displacement or enhancement, resulting in increased productivity and income. According to an IMF report, half of the jobs influenced by AI might face negative consequences, with higher-skilled jobs experiencing a more significant impact.

The report also highlighted the uneven effects of AI on labour markets in emerging and developing economies. Georgieva urged a focus on assisting low-income countries in adapting quickly to harness AI's opportunities. While expressing optimism about the global economy meeting previous forecasts, she cautioned about challenges in achieving a balanced monetary policy.

Georgieva stressed AI-related productivity boosts as a potential solution for increasing global productivity. Looking ahead, she predicted a challenging fiscal year in 2024, with countries grappling with debt burdens from the COVID-19 pandemic. Refusing to discuss her future plans, Georgieva focused on her current commitment to the IMF, acknowledging the privilege of leading the institution during turbulent times and expressing pride in its resilience.