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WorldAI will impact 40 pc of jobs globally, says IMF Chief

AI will impact 40 pc of jobs globally, says IMF Chief

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WASHINGTON, Jan 15: Artificial intelligence poses risks to job security around the but also offers a “tremendous opportunity” to boost flagging productivity levels and fuel global growth, the IMF chief said.

AI will affect 60% of in advanced economies, the Monetary Fund's managing director, Kristalina Georgieva, said in an interview in Washington, shortly before departing for the annual World Economic Forum in Davos, Switzerland.

With AI expected to have less effect in developing countries, around “40% of jobs globally are likely to be impacted,” she said, citing a new IMF report.

“And the more you have higher skilled jobs, the higher the impact,” she added.

However, the IMF report published Sunday evening notes that only half of the jobs impacted by AI will be negatively affected; the rest may actually benefit from enhanced productivity gains due to AI.

“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 said.

The IMF report predicted that, while labour markets in emerging markets and developing economies will see a smaller initial impact from AI, they are also less likely to benefit from the enhanced productivity that will arise through its integration in the workplace.

“So artificial intelligence, yes, a little scary. But it is also a tremendous opportunity for everyone,” she said.

It is “poised for a soft landing,” she said, adding that “monetary policy is doing a good job, inflation is going down, but the job is not quite done.”

“So we are in this trickiest place of not easing too fast or too slow,” she said.

The global could use an AI-related productivity boost, as the IMF predicts it will continue growing at historically muted levels over the medium term.

“God, how much we need it,” Ms. Georgieva said. “Unless we figure out a way to unlock productivity, we as the world are not for a great story.”

Ms. Georgieva said 2024 is likely to be “a very tough year” for fiscal policy worldwide, as countries look to tackle debt burdens accumulated during the Covid-19 pandemic, and rebuild depleted buffers.

Billions of people are also due to go to the polls this year, putting additional pressure on governments to either raise spending or cut taxes to win popular support.

“About 80 countries are going to have elections, and we know what happens with pressure on spending during election cycles,” she added.

The concern at the IMF, Ms. Georgieva said, is that governments around the world spend big this year and undermine the hard-won progress they have made in the fight against high inflation.

“If monetary policy tightens and fiscal policy expands, going against the objective of bringing inflation down, we might be for a longer ride,” she added.

Northlines
Northlines
The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

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