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  • Voltaire Staff

AI's impact on labour force like tsunami: Top IMF Executive



Artificial intelligence is poised to reshape the global labour landscape like a "tsunami" and it is threatening more than half of jobs already, International Monetary Fund Managing Director Kristalina Georgieva has said.


Speaking at an event organised by the Swiss Institute of International Studies, associated to the University of Zurich, Georgieva on Monday warned that AI was projected to influence 60 per cent of jobs in advanced economies and 40 per cent of jobs worldwide within the next two years.


"We have very little time to get people ready for it, businesses ready for it," she said.


"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," she said.


Georgieva noted that the world economy has faced increased vulnerability to unexpected events in recent times, such as the 2020 global pandemic and the conflict in Ukraine.


"We are not in global recession," said Georgieva, who faced disruptions from protesters demanding action on addressing debt issues in the developing world.


"Last year there were fears that most economies would slip into recession, that didn't happen," she said. "Inflation that has hit us with a very strong force is on the decline, almost everywhere."


Swiss National Bank (SNB) Chairman Thomas Jordan, who also addressed the gathering, declared that Switzerland's battle against inflation has progressed significantly.


In April, inflation reached 1.4 per cent, marking the 11th consecutive month that price increases have remained within the SNB's target range of 0-2 per cent.


"The outlook for inflation is much better. It looks that for the next few years, inflation could be really in the same range of price stability," Jordan said. "But there is a lot of uncertainty."


Image Source: Unsplash

 

 

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