The head of the IMF warned of an AI-induced “tsunami” that could affect the labor market.
Speaking at an event organized by the Swiss Institute of International Studies, International Monetary Fund Managing Director Dr. Kristalina Georgieva painted the picture of a “slow-moving tsunami” that will alter job landscapes around the world by as companies continue to adopt and integrate artificial intelligence solutions. designed to improve efficiency and productivity.
Citing projections, he warned that AI could affect around two in five jobs worldwide, or up to three in five in advanced economies such as the United States and the United Kingdom.
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Despite the IMF's worrying outlook, its boss stressed that the outcome need not be predetermined, and urged proactive management to use AI to reap productivity benefits.
Georgieva summarized (via Reuters): “It could bring [a] “A huge increase in productivity if we manage it well, but it can also generate more misinformation and, of course, more inequality in our society.”
The boss warned that “we have very little time to prepare people for it,” which implies the urgency of taking the appropriate measures to reap the benefits of the technology while protecting workers.
However, while many have argued that AI only serves to improve worker productivity rather than completely replacing human workers, others are concerned that companies will need to employ fewer workers as a direct result of this productivity improvement. .
Earlier this year, Google laid off several of its workers in the advertising unit and AI was reportedly held accountable. Layoffs have now surpassed 83,000, comprising a combination of AI-induced layoffs and cost-cutting measures.
