Artificial intelligence (AI) is poised to profoundly change the global economy, with both positive and negative effects on workers, productivity and growth, according to the International Monetary Fund (IMF) chief Kristalina Georgieva.
AI and job security
In a recent interview with AFP, Ms. Georgieva said that AI will affect 60% of jobs in advanced economies, such as the US and UK, and 40% of jobs globally. She cited a new IMF report that analysed the exposure and complementarity of different occupations to AI.
The report found that some jobs may benefit from AI integration, enhancing productivity and income levels, while others may face displacement or lower wages due to AI automation. The report also noted that the impact of AI will vary across countries, depending on their level of development, skill composition and economic structure.
The IMF chief said that the most vulnerable jobs are those with low complementarity to AI, meaning that AI can perform key tasks currently done by humans. These include telemarketing, data entry and routine clerical work. On the other hand, the safest jobs are those with high complementarity to AI, meaning that AI can assist human work rather than replace it entirely. These include surgeons, lawyers and judges.
AI and inequality
Ms. Georgieva warned that AI may also worsen inequality within and between countries, as some workers and regions may be left behind by the rapid technological change. She said that it is “crucial” that countries build social safety nets to mitigate the impact of AI on vulnerable workers and invest in education and training to help them adapt to new skills and opportunities.
She also urged countries to cooperate on setting common standards and regulations for AI, as well as sharing best practices and data. She said that the IMF is ready to support its member countries in harnessing the benefits of AI while minimizing the risks.
AI and growth
Despite the challenges posed by AI, Ms. Georgieva also highlighted its “tremendous opportunity” to boost flagging productivity levels and fuel global growth. She said that AI can help solve some of the most pressing problems facing humanity, such as climate change, health care and poverty.
She said that AI can also enhance innovation, creativity and competitiveness, as well as improve the quality of life for millions of people. She cited examples of how AI is already transforming various sectors and industries, such as agriculture, manufacturing, finance and entertainment.
She said that the global economy could use an AI-related productivity boost, as the IMF predicts it will continue growing at historically muted levels over the medium term. She said that “unless we figure out a way to unlock productivity, we as the world are not for a great story.”