'Like A Tsunami': IMF MD Kristalina Georgieva Talks About AI's Impact On Jobs, Says 40% Global Jobs To Be Affected In 2 Years

"It could bring tremendous increase in productivity if we manage it well, but it can also lead to more misinformation," Georgieva said.

Kristalina Georgieva emphasised the need for swift action to prepare both individuals and businesses for the impending changes.

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Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), likened the impact of artificial intelligence (AI) on the global labour market to a "tsunami." Speaking at an event hosted by the Swiss Institute of International Studies in Zurich, Georgieva warned that AI is poised to affect approximately 60 per cent of jobs in advanced economies and 40 per cent worldwide within the next two years, reported Reuters.

Acknowledging the urgency of the situation, Georgieva emphasised the need for swift action to prepare both individuals and businesses for the impending changes. "We have very little time to get people ready for it, businesses ready for it," Georgieva said.

While she highlighted the potential for AI to significantly boost productivity if properly managed, she also cautioned against its potential to exacerbate misinformation and inequality within societies. She added, "It could bring tremendous increase in productivity if we manage it well, but it can also lead to more misinformation and, of course, more inequality in our society."

Resilience Of World Economy

Reflecting on the recent volatility in the global economy, Georgieva noted the increased susceptibility to shocks, citing events such as the COVID-19 pandemic and the conflict in Ukraine. Despite these challenges, she expressed optimism about the resilience of the world economy, noting that it had thus far avoided slipping into a global recession.

Addressing concerns about inflation, Georgieva highlighted positive trends, noting a decline in inflation rates across many regions. She pointed out that while inflation had posed significant challenges in the past, it was now showing signs of stabilisation, offering a more favourable outlook for the future.

Thomas Jordan, Chairman of the Swiss National Bank, echoed Georgieva's sentiments regarding inflation, stating that Switzerland had made significant progress in combating rising prices. He emphasised the importance of maintaining price stability while acknowledging the existence of uncertainties that could impact future economic conditions.

Climate Change Protests

The event was not without its disruptions, as protesters calling for action on climate change and debt relief for developing nations voiced their concerns.

Despite the interruptions, Georgieva and other speakers remained focused on addressing the pressing economic challenges facing the global community.