IMF Chief Refers To AI As A Double-Edged Sword With Tremendous Opportunity For Global Growth But A Serious Risk To Job Security

The IMF Chief is finally breaking her silence on the revolution of AI that we’ve seen dominate the world at an alarming pace.

Kristalina Georgieva mentioned during her recent US interview in the state capital how it’s a double-edged sword as it can fuel a huge rise in global growth and enhance productivity levels. But at the same time, it also puts the world’s jobs at risk.

Shedding more light on the matter, she added how it’s bound to impact a whopping 60% of jobs arising in some of the world’s most modern economies, right before departing for the yearly World Economic Forum that’s taking place in Switzerland this year.

She cites more figures including how AI would have less of an impact in nations categorized as developing as explained in the IMF report. As a whole, stats indicated how 40% of the world’s jobs could be affected. And if you happen to be in a job that requires a greater degree of skill, you’ll feel the effect more.

Let’s not forget how the report rolled out by the IMF on Sunday during the evening hours mentioned how more than 50% of the jobs affected by the revolution of AI would be done negatively. The rest wouldn’t be so bad, and in fact would bring positive benefits and gains.

The IMF Chief highlighted further how users' jobs could vanish as a whole or it might be the other way around where the job could be impacted positively and bring about more productive results, causing a rise in income.

More emphasis on the report and detailed reading proved how it’s the labor markers located in a host of developing nations that would witness a smaller effect due to AI and you’ll much less likely be able to benefit through enhanced developments from AI that come into place after the technology gets integrated.

The goal is to focus more on assisting low-income nations specifically to move at a faster pace to get better opportunities and make the most that AI can bring, the IMF chief further mentioned.

When it comes to the world of AI, it’s all a little bit scary but the great opportunities on offer here are worth a mention, she explained.

The reports come as the International Monetary Fund is all set to roll out the latest economic forecasts starting during the latter part of January and it would prove to the world that the global economy is on the right track in terms of meeting the goals outlined in forecasts of the past.

She praised the IMF for doing a wonderful job and for giving rise to a great soft landing. More talks revolved around seeing a decline in world inflation but even then the job isn’t done yet and more work is needed. The IMF chief called it a tricky situation and the place they are in right now signals how they cannot ease at a pace that is either too fast or too slow.

Again referring to Artificial Intelligence, she says the world’s economy could really make the most of this sudden boost in AI-linked productivity as IMF feels it would carry on growing at record-breaking levels during the middle term period.

Georgieva says it’s a period when we needed AI the most and it’s now time to find out how productivity must be unlocked in the best manner to showcase its positive potential while overcoming the hurdles that arise with it.

The year ahead has been deemed tough by the IMF and that’s for the entire world as stringent fiscal policy begins rolling out. Many nations are still doing everything in their power to overcome debt burdens seen throughout the pandemic and therefore coming back to the level that they were before the lockdown has not been easy.

So many are set to vote in their national elections soon and that again would pressure lawmakers to raise the level of spending or simply reduce taxes if they wish to attain the right kind of support from respective voters.

Read next: AI Will Give Rise To The Fastest Tech Revolution In Human History And The World May Not Be Prepared, Sam Altman Fears
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