IMF Chief warns of AI’s impact on Global Employment

During the World Summit of Governments in Dubai, Kristalina Georgieva, the managing director of the International Monetary Fund, highlighted a significant finding from an IMF study, indicating that nearly 40% of global employment faces exposure to Artificial Intelligence.

Georgieva compared the potential impact of AI to a tsunami hitting the labor market, stressing its scale and significance. She underscored the transformative nature of AI, which could lead to the creation of new jobs, alteration of existing roles, or even the disappearance of certain positions.

“The transition to AI will be like the industrial revolution in terms of the impact it will have, affecting 40% of jobs,” stated Georgieva.

Regarding readiness for this technological shift, Georgieva emphasized four key factors: digital infrastructure, skills and labor market mobility, investment in innovation, and regulation and ethics. While some countries, such as the United Arab Emirates, are prepared for the AI revolution, the majority of nations, especially developing ones, are not adequately equipped.

The study by the IMF revealed that about half of the jobs exposed to AI could benefit from its integration, leading to improved productivity. However, for the other half, AI applications may replace tasks currently performed by humans, potentially resulting in reduced labor demand, wages, and hiring. In extreme cases, certain jobs may disappear altogether. However, many developing countries lack the necessary infrastructure or skilled workforce to fully harness the benefits of AI. This raises concerns about the potential deepening of technological inequality between nations over time.

As the world navigates the implications of AI on the job market, Georgieva stressed the importance of proactive measures to ensure inclusive growth and mitigate the risks of widening technological disparities among nations.