The leader of IMF expresses concerns about the potential dangers of AI, but also recognizes its immense potential for the worldwide economy.
The IMF director told AFP that artificial intelligence presents potential threats to job stability globally, but also presents a significant chance to increase declining levels of productivity and drive international economic growth.
According to Kristalina Georgieva, managing director of the International Monetary Fund, AI will have an impact on 60% of jobs in developed nations. She made this statement during an interview in Washington before traveling to Davos, Switzerland for the annual World Economic Forum.
According to a recent report from the IMF, approximately 40% of jobs worldwide may be affected by the limited impact of AI in developing nations.
She stated that having more high-skilled jobs will have a greater impact.
The report released by IMF on Sunday evening states that only 50% of jobs affected by AI will experience negative effects, while the remaining may see improvements in productivity due to AI.
Georgieva stated that your job could either completely disappear, which is not ideal, or it could be improved by the use of artificial intelligence. This could result in increased productivity and potentially higher income.
According to the IMF report, labor markets in emerging and developing economies will experience a lesser impact from AI initially. However, they are also less likely to reap the benefits of increased productivity that will result from its implementation in the workplace.
Georgieva emphasized the need to prioritize support for low-income countries, specifically in accelerating their ability to seize the opportunities brought by artificial intelligence, in an interview with AFP.
She expressed concern about artificial intelligence, but also recognized its potential for growth and advancement.
The International Monetary Fund is scheduled to release updated predictions for the economy later this month. According to her, these forecasts will indicate that the global economy is generally on track to meet the previous projections.
She stated that it is “set to have a smooth descent,” and also acknowledged that “the efforts of monetary policy are effective, with a decrease in inflation, although the task is not complete.”
She stated that we are currently facing the difficult situation of not being able to reduce restrictions too quickly or too slowly.
The world economy would benefit from an increase in productivity through the use of AI, as the IMF forecasts a continued growth at historically low levels in the coming years.
“We are in desperate need of it,” stated Georgieva. “If we cannot find a solution to increase productivity, our world will not have a positive outcome.”
‘Tough’ year ahead
According to Georgieva, 2024 is expected to be a challenging year for fiscal policy globally. This is due to countries needing to address their increased debts from the Covid-19 pandemic and replenish their depleted reserves.
This year, billions of individuals will also be participating in elections, creating added tension for governments to increase spending or decrease taxes in order to gain public approval.
“Approximately 80 nations will hold elections, and we are aware of the impact it has on spending during these cycles,” she stated.
Georgieva, speaking on behalf of the IMF, expressed concern that governments worldwide may overspend this year and jeopardize the progress they have made in combatting high inflation.
She mentioned that if the monetary policy becomes more stringent and the fiscal policy becomes more expansive, it could go against the goal of lowering inflation and potentially prolong the process.
Focusing on the task at hand.
Georgieva, who is approaching the end of her five-year term as head of the IMF, declined to comment on whether she plans to seek a second term as leader of the global financial organization.
She stated that she is currently focused on completing her task at hand.
“I consider it a great honor to have served as the leader of the IMF during a period of intense turmoil, and I am proud of the way the organization handled it,” she stated.
“Allow me to focus on the task at hand.”