IMF Chief: AI Presents Risks and 'Tremendous Opportunity' for the Global Economy
In a recent interview ahead of the World Economic Forum in Davos, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), acknowledged the risks posed by artificial intelligence (AI) to job security globally. However, she also emphasized the "tremendous opportunity" AI presents for boosting productivity and fueling global growth.
According to Georgieva, AI is expected to impact 60 percent of jobs in advanced economies, while the figure is around 40 percent globally, with developing countries facing a smaller initial impact. The IMF's report, published recently, suggests that only half of the jobs affected by AI will see negative consequences, as the other half may experience enhanced productivity and income gains.
While acknowledging the potential for job displacement, Georgieva stressed the importance of focusing on helping low-income countries seize the opportunities presented by AI. She described AI as both "a little scary" and "a tremendous opportunity for everyone."
Georgieva hinted at the challenges in fiscal policies worldwide in 2024, particularly as countries grapple with debt burdens accumulated during the COVID-19 pandemic. With approximately 80 countries heading to the polls, she expressed concerns about increased pressure on government spending, potentially undermining progress made in the fight against high inflation.
The IMF chief highlighted the delicate balance required in monetary and fiscal policies, cautioning against policies that could prolong the battle against inflation. As the global economy continues to grow at historically muted levels, Georgieva emphasized the need for an AI-related productivity boost.
While Georgieva's term at the helm of the IMF is set to end this year, she remained tight-lipped about her future plans, stating her focus is on her current responsibilities. She expressed pride in the IMF's coping during turbulent times, indicating a commitment to her present role. The IMF is expected to release updated economic forecasts later this month, revealing the current state of the global economy.
