AI is hitting the job market 'like a tsunami': IMF Chief Kristalina Georgieva

Kristalina Georgieva, head of the International Monetary Fund, recently said that artificial intelligence (AI) is about to change the job market dramatically saying it is hitting the market ‘like a tsunami’. She warned that in the next two years, AI could affect 60 per cent of jobs in developed countries and 40 per cent of jobs worldwide.


Georgieva emphasised the importance of getting ready for these changes. She said, “We have very little time to get people ready for it, businesses ready for it," 

AI can boost how much we produce and make things more efficient, but it also might increase false information and make income gaps wider. She highlighted the need for careful management to make the most out of AI.

"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,” Georgieva added. 

The statements come as big tech is going all-in on new and more powerful versions of their AI models. OpenAI recently launched a new GPT-4o model which will be made free for all users. The GPT-4o update also makes the chatbot more conversational, almost completely human like. It can also see and respond what it is seeing in real time. 

Google will be introducing many new AI features today at the I/O 2024 including some new features for Android 15 and more.   

State of world economy 

Despite problems like the COVID-19 pandemic and the war in Ukraine, the global economy is doing better than expected. Georgieva mentioned that there's no global recession right now, and last year's worries about economies going downhill didn't come true. Inflation, or the rate at which prices are rising, has started to slow down in many places.

Georgieva thinks the global economy will keep facing challenges, especially from climate change. She believes it's crucial to have strong strategies in place to deal with these ongoing and future problems.