Artificial intelligence (AI) poses a significant threat to jobs worldwide but also offers a tremendous opportunity to increase productivity and spur global growth, said the managing director of the International Monetary Fund (IMF) In an interview in Washington D.C. ahead of the World Economic Forum in Davos, Kristalina Georgieva said AI is predicted to impact 60% of jobs in advanced economies. With less effect anticipated in developing nations, around 40% of jobs globally are likely to be impacted, she stated, referencing a new IMF report published on Sunday.And the more you have higher skilled jobs, the higher the impact, she added.However, the report notes that only half of the jobs affected by AI will be negatively impacted the remainder stand to benefit from enhanced productivity through AI integration.Your job may disappear altogether - not good - or artificial intelligence may enhance your job, so you actually will be more productive and your income level may go up, Ms. Georgieva explained.The IMF chief warned that while emerging markets face less initial job losses from AI, they are also less likely to reap productivity gains through workplace integration.We must focus on helping low income countries in particular to move faster to be able to catch the opportunities that artificial intelligence will present, she said.So artificial intelligence, yes, a little scary. But it is also a tremendous opportunity for everyone, she said.Ms. Georgieva stated the IMF is poised to release updated economic forecasts confirming the global economy remains on track to meet previous projections. She described the current position as a soft landing, with inflation decreasing but monetary policy still requiring careful handling.The IMF predicts muted medium-term global growth. God, how much we need it, Ms Georgieva said regarding an AI productivity boost. Unless we figure out a way to unlock productivity, we as the world are not for a great story.The IMF chief cautioned that 2024 is likely to see a very tough year for fiscal policy as nations tackle pandemic debt and rebuild depleted reserves. With over 80 countries holding elections, governments also face pressure to increase spending or cut taxes to gain support.The IMF is concerned governments may undermine inflation-reduction efforts through excessive election-year spending. If monetary policy tightens and fiscal policy expands, going against the objective of bringing inflation down, we might be for a longer ride, Ms. Georgieva warned.With the end of her five-year term approaching, Ms. Georgieva declined to comment on seeking re-election as IMF head, saying I have a job to do right now and my concentration is on doing that job.
