Artificial intelligence will hit the labor market like a “tsunami,” according to International Monetary Fund managing director Kristalina Georgieva. Since the onset of AI, experts have debated its pros and cons for the workforce. Essentially, could a tool capable of supercharging productivity by automating scores of routine tasks put millions of peopleout of a job? Or will technological change find a way, as it usually does, of creating new roles to replace the ones it’s rendering obsolete? Add Georgieva to the concerned camp. “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 said during an event in Zurich. In the same speech, Georgieva addressed other problems the global economy had faced, but had nonetheless weathered. “Last year there were fears that most economies would slip into recession, that didn’t happen,” Georgieva said. “Inflation that has hit us with a very strong force is on the decline, almost everywhere.” In other words, the economy could be somewhat tsunami-proof, but still, it’s coming. AI, while still a major force that could disrupt the world economy, will likely be more permanent than inflation or recession fears. In a January IMF report about AI, authored by Georgieva, she struck a more optimistic tone about the promises of AI. “The AI era is upon us, and it is still within our power to ensure it brings prosperity for all,” she wrote. Now, Georgieva sounds more concerned. Though that may not be entirely surprising given the same January report forecasted AI would impact vast swaths of jobs across many different industries. AI will impact about 40% of jobs across the world, according to the report. In advanced economies, that number will be even higher with an estimated 60% of jobs affected by AI.
Full report : AI will hit the labor market like a ‘tsunami,’ IMF chief warns. ‘We have very little time to get people ready for it.’
