AI Global Impact: Challenges and Opportunities, IMF Chief Warns of Tough Year Ahead

By Consultants Review Team Monday, 15 January 2024

Artificial Intelligence (AI) is poised to reshape the global job market, with approximately 40% of jobs worldwide likely to be impacted, according to the International Monetary Fund's (IMF) Managing Director, Kristalina Georgieva. In an interview before the World Economic Forum in Davos, Georgieva expressed that while AI is anticipated to affect 60% of jobs in advanced economies, developing nations may experience a smaller initial impact. The IMF's recent report highlights that the impact of AI on jobs will be uneven, with both negative and positive effects on employment. While some jobs may disappear, others could witness increased productivity and income levels.

Georgieva emphasized the need to focus on assisting low-income countries to harness the opportunities presented by AI. She acknowledged the potential risks to job security but also highlighted the tremendous opportunities for productivity enhancement and global growth.

The IMF is set to release updated economic forecasts later this month, indicating that the global economy is on track to meet previous predictions. However, Georgieva cautioned that 2024 could be a challenging year for fiscal policy worldwide, with numerous countries addressing debt burdens from the COVID-19 pandemic and navigating election-related spending pressures.

While discussing monetary policy and inflation, Georgieva emphasized the delicate balance required for a soft landing in the global economy. She underscored the importance of AI-related productivity boosts to overcome historically muted growth levels. The IMF chief expressed the urgency of unlocking productivity globally, stating that the world needs to find ways to achieve this for a more promising future.

Regarding her future at the IMF, Georgieva refrained from discussing the possibility of a second term, emphasizing her current focus on the responsibilities at hand. She reflected on the privilege of leading the IMF during turbulent times, expressing pride in how the institution navigated challenges. As billions of people worldwide head to the polls in 2024, Georgieva highlighted concerns about maintaining fiscal discipline and avoiding policies that could undermine efforts to combat high inflation.

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