The global workforce is on the brink of a significant transformation as artificial intelligence (AI) takes centre stage. According to the International Monetary Fund (IMF) chief, Kristalina Georgieva, this shift is not just a challenge but also a tremendous opportunity for global growth. In a recent interview, she highlighted the potential impact of AI on jobs, shedding light on the dual nature of its influence.The global reach of AIAI is poised to touch nearly 40% of jobs globally, with advanced economies bearing the brunt of around 60% job impact. The IMF chief emphasized that the more skilled the job, the higher the potential impact.AI has captivated the world. New IMF research & our new Preparedness Index shows it will affect almost 40% of jobs around the world, replacing some & complementing others. My blog on why we must have a careful balance of policies to tap its potential. https://t.co/5uIXxWd4bu pic.twitter.com/cZMGciz7s0— Kristalina Georgieva (@KGeorgieva) January 14, 2024Uneven effects on developing economiesWhile the initial impact of AI in developing countries might be smaller, the IMF report suggests that these economies are less likely to benefit from the enhanced productivity gains associated with AI. Georgieva stressed the importance of supporting low-income countries to seize the opportunities presented by AI.A double-edged sword: Job disappearance vs. enhancementGeorgieva pointed out that while AI could lead to job disappearance, it also holds the promise of enhancing jobs, making workers more productive and potentially increasing income levels. The IMF report indicates that only half of the jobs affected by AI might face negative consequences the rest could experience productivity gains.AI and global economic growthRecognising the potential of AI as a catalyst for global growth, Georgieva urged a focus on helping low-income countries harness the opportunities presented by AI. The upcoming economic forecasts from the IMF are expected to underscore the importance of integrating AI to maintain global economic momentum.Navigating the challenges aheadDespite the positive outlook, Georgieva acknowledged that 2024 could be a tough year for fiscal policy worldwide. Countries grappling with debt burdens from the COVID-19 pandemic may face challenges in balancing spending needs with fiscal responsibility. The IMF chief expressed concern that excessive spending during election cycles in about 80 countries could impact inflation and hinder progress.AI as a productivity boost for the global economyIn a world projected to experience historically muted economic growth, Georgieva emphasized the urgent need for an AI-related productivity boost. She highlighted the critical role AI could play in unlocking productivity and steering the global economy toward a positive trajectory.
