The managing director of the International Monetary Fund, Kristalina Georgieva, came out with her darkest forecast.
Artificial intelligence (AI) is hitting the world labor market like a “tsunami”, said Georgieva, quoted by Reuters and BNR.
Artificial intelligence is likely to affect 60% of jobs in advanced economies and 40% of jobs worldwide in the next two years, Georgieva said at an event in Zurich.
“We have very little time to prepare people for this, for businesses to be ready for this,” she said at the event organized by the Swiss Institute for International Studies, affiliated with the University of Zurich.
“It (AI) can lead to huge increases in productivity if we manage it well, but it can also lead to more misinformation and, of course, more inequality in our society,” the IMF chief noted.
Kristalina Georgieva said the global economy has become more susceptible to shocks in recent years, citing the 2020 global pandemic as well as the war in Ukraine.
“Despite expecting more shocks, especially due to the climate crisis, the global economy has remained remarkably resilient,” she pointed out.
“We are not in a global recession,” said Georgieva, who was heckled by protesters calling for action on climate change and tackling debt in the developing world.
“Last year there were fears that most economies would fall into recession, but this did not happen. Inflation, which hit us very hard, is decreasing almost everywhere,” the head of the IMF pointed out.
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