IMF Chief Warns AI Could Eliminate Jobs but Also Improve Productivity

IMF Chief Kristalina Georgieva highlighted the dual effects of artificial intelligence, noting it could either eliminate jobs or enhance them, leading to better productivity and higher incomes.

In an advance economy context, AI could impact around 60% of jobs, whereas globally the figure is around 40%, according to an IMF report discussed with AFP.

The report, released on a Sunday, revealed that AI's impact would be mixed, with about half of the affected jobs facing potential negative consequences, while the remaining could see productivity gains. Georgieva stressed the importance of supporting low-income countries to harness AI opportunities.

As AI promises productivity boosts, Georgieva remains optimistic, though cautious about the global economy's path, which she believes is set for a 'soft landing,' with inflation decreasing but still warranting attention regarding monetary policy adjustments.

Georgieva also anticipates a challenging fiscal landscape in 2024, with many countries managing debt from the pandemic and potentially succumbing to election-year spending pressures. She emphasized the importance of fiscal caution to preserve the fight against inflation.

Approaching the end of her current term as IMF chief, Georgieva remained focused on her duties instead of speculating on a second term, expressing pride in the IMF's performance during testing times.