DStv Channel 403 Sunday, 24 November 2024

IMF chief says AI holds risks, 'tremendous opportunity' for global economy

DAVOS - Artificial intelligence poses risks to job security around the world but also offers a "tremendous opportunity" to boost flagging productivity levels and fuel global growth, the IMF chief told AFP.

AI will affect 60 percent of jobs in advanced economies, the International Monetary Fund's managing director, Kristalina Georgieva, said in an interview in Washington, shortly before departing for the annual World Economic Forum in Davos, Switzerland.

With AI expected to have less effect in developing countries, around "40 percent of jobs globally are likely to be impacted," she said, citing a new IMF report.

"And the more you have higher skilled jobs, the higher the impact," she added.

However, the IMF report published Sunday evening notes that only half of the jobs impacted by AI will be negatively affected; the rest may actually benefit from enhanced productivity gains due to AI. 

"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. 

The IMF report predicted that, while labour markets in emerging markets and developing economies will see a smaller initial impact from AI, they are also less likely to benefit from the enhanced productivity that will arise through its integration in the workplace.   

"We must focus on helping low income countries in particular to move faster to be able to catch the opportunities that artificial intelligence will present," Georgieva told AFP. 

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

The IMF is due to publish updated economic forecasts later this month which will show the global economy is broadly on track to meet its previous forecasts, she said.  

It is "poised for a soft landing," she said, adding that "monetary policy is doing a good job, inflation is going down, but the job is not quite done."

"So we are in this trickiest place of not easing too fast or too slow," she said.

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.

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