IMF chief acknowledges AI job risks but highlights 'tremendous opportunity'

International Monetary Fund's Managing Director, Kristalina Georgieva, has highlighted the dual nature of artificial intelligence (AI) concerning job security globally.

In an interview with Agence France-Presse, Georgieva expressed that AI is anticipated to impact 60 per cent of jobs in advanced economies, with around 40 per cent globally.

Despite the perceived risks, Georgieva emphasised that AI presents a "tremendous opportunity" to enhance productivity levels and fuel global growth.

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Job displacement or enhancement: The AI dilemma

Georgieva conveyed the nuanced impact of AI on employment, stating, "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."

According to a new IMF report, only half of the jobs influenced by AI are expected to face negative consequences, while the remaining half might benefit from increased productivity due to AI integration into the workplace.

The report suggests that higher-skilled jobs are likely to experience a more substantial impact.

AI's uneven effects and global economic landscape

The IMF report indicated that while labour markets in emerging and developing economies might initially experience a smaller impact from AI, they are also less likely to benefit from enhanced productivity gains.

Georgieva stressed the importance of focusing on assisting low-income countries in adapting quickly to seize the opportunities presented by AI.

As the IMF prepares to release updated economic forecasts later this month, Georgieva expressed optimism about the global economy, noting that it is on track to meet previous forecasts but cautioned that challenges remain in achieving a balanced monetary policy.

AI's role in global productivity and challenges ahead

In addressing the global economy's need for increased productivity, Georgieva emphasised the potential role of AI-related productivity boosts.

She noted the continued growth of the global economy at historically subdued levels and expressed the necessity of unlocking productivity for a more favourable global narrative.

Looking ahead, Georgieva predicted a challenging fiscal year in 2024, with countries grappling to address debt burdens from the COVID-19 pandemic and managing depleted buffers.

The IMF's concern lies in the possibility of governments overspending and undermining efforts to combat inflation.

IMF chief's future and institutional accomplishments

Refusing to delve into her future plans, Georgieva, whose term at the IMF concludes this year, emphasised her current commitment to the role.

She acknowledged the privilege of leading the IMF during turbulent times and expressed pride in the institution's resilience.

Georgieva concluded by focusing on her immediate responsibilities, stating, "Let me do what is in front of me right now."

(With inputs from AFP)