‘Tough Year Ahead’: IMF Report Says AI Likely To impact 40% Of Jobs Globally

New Delhi: International Monetary Fund (IMF) chief Kristalina Georgieva has sounded a grim warning vis-à-vis artificial intelligence (AI).

In an interview to AFP, the MD of the Washington-based United Nations financial institution pointed out the risks to job security posed by AI around the world.

The Bulgarian economist said AI will affect 60% of jobs in advanced economies, while it is expected to have lesser effect in developing countries.

“Around 40 per cent of jobs globally are likely to be impacted. And the more you have higher skilled jobs, higher the impact,” Georgieva said, citing an IMF report.

“Your job may disappear altogether — not good — or artificial intelligence may enhance your job, so you actually will be more productive and your income level may go up,” Georgieva said before leaving for the annual World Economic Forum (WEF) in Davos, Switzerland.

Hence, AI also offers a “tremendous opportunity” to boost flagging productivity levels and fuel global growth, the IMF chief said.

“So artificial intelligence, yes, a little scary. But it is also a tremendous opportunity for everyone,” she said.

The IMF report, published on Sunday, has predicted that 2024 is likely to be “a very tough year” for fiscal policy worldwide, as countries continue to tackle debt burdens accumulated during the COVID-19 pandemic, and rebuild depleted buffers.

A large section of the population across dozens of countries will go to polls this year, which will put additional pressure on governments to either raise spending or cut taxes to win popular support.

“About 80 countries are going to have elections, and we know what happens with pressure on spending during election cycles,” she added.

IMF is concerned that governments around the world could spend big this year, undoing the hard-earned progress they made in the fight against high inflation.