AI Has Dual Impact on Jobs and Global Growth: IMF Chief

According to the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, artificial intelligence (AI) poses challenges to job security worldwide but also presents a significant opportunity to boost productivity and global growth. In an interview before the annual World Economic Forum, Georgieva revealed that AI is expected to impact 60 percent of jobs in advanced economies and approximately 40 percent globally, as per a recent IMF report.

Georgieva emphasized that higher-skilled jobs are likely to experience a more pronounced impact. However, the IMF report suggests that only half of the jobs affected by AI will face negative consequences; the remainder could benefit from increased productivity due to AI integration.

AI Has Dual Impact on Jobs and Global Growth: IMF Chief

The uneven effects of AI can have a smaller initial impact on labor markets in emerging and developing economies. Despite this, these regions are less likely to benefit from the enhanced productivity resulting from AI integration.

Georgieva stressed the importance of assisting low-income countries in adapting quickly to seize the opportunities presented by artificial intelligence. While acknowledging the potential challenges of AI, she also highlighted its tremendous potential for everyone.

Regarding the global economy, the IMF will publish updated economic forecasts soon. It is generally on track to meet previous projections. Georgieva mentioned that the global economy is poised for a “soft landing,” with monetary policy effectively managing inflation. However, she noted the delicate balance required in adjusting monetary policy to avoid easing too rapidly or too slowly.

Looking ahead, Georgieva anticipates a challenging fiscal year in 2024 worldwide. Countries face the task of addressing debt burdens accumulated during the COVID-19 pandemic and rebuilding depleted buffers. With numerous elections scheduled in about 80 countries, the IMF is concerned that increased spending during election cycles may undermine progress in combating high inflation.

Despite her term ending this year, Georgieva declined to comment on whether she intends to run for a second stint at the helm of the IMF. She emphasizes her current focus on the responsibilities at hand and expressing pride in the institution’s resilience during turbulent times.