'Your job may disappear altogether or...': IMF Chief Georgieva warns AI could be a double-edged sword

Artificial Intelligence (AI) is set to impact 60 per cent of jobs in advanced economies and around 40 per cent of jobs globally, according to a new report by the International Monetary Fund (IMF). The report, discussed by IMF's managing director, Kristalina Georgieva, highlights both the risks and opportunities presented by AI.

She claimed AI poses a threat to job security worldwide, but it also presents a "tremendous opportunity" to boost productivity levels and fuel global growth. "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," Georgieva explained.

According to AFP, the report notes that only half of the jobs impacted by AI will be negatively affected. The rest may benefit from enhanced productivity gains due to AI. However, the effects are expected to be uneven. Labor markets in emerging markets and developing economies will see a smaller initial impact from AI but are also less likely to benefit from the enhanced productivity that will arise through its integration in the workplace.

Georgieva emphasized the need to help low-income countries move faster to catch the opportunities that AI will present. "So artificial intelligence, yes, a little scary. But it is also a tremendous opportunity for everyone," she said.

The IMF is due to publish updated economic forecasts later this month. Georgieva hinted that the global economy is broadly on track to meet its previous forecasts and is "poised for a soft landing." However, she warned that 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.

With billions of people due to go to the polls this year, there is additional pressure on governments to either raise spending or cut taxes to win popular support. Georgieva expressed concern that governments around the world might spend big this year and undermine the progress they have made in the fight against high inflation.

As Georgieva's five-year term at the IMF's helm is set to end this year, she refused to comment on whether she intends to run for a second stint leading the international financial institution. "I have a job to do right now and my concentration is on doing that job," she said.

Also read: India a ‘star performer’; projected to contribute over 16% to global growth: IMF

Also watch: IMF Applauds India's Growth Story