The director of the International Monetary Fund (IMF) has raised concerns about the potential disruptions that may arise from the integration of artificial intelligence into various business processes. Speaking at events organized by the Swiss Institute of International Studies, Kristalina Georgieva highlighted the looming “tsunami” that could impact the global labor market as AI technologies become more prevalent.
Georgieva noted that while the adoption of AI is currently progressing at a gradual pace, the implications could be far-reaching. She warned, “This is a slowly moving tsunami. Despite all the excitement around the technology, its full effects have yet to be fully realized.” She pointed out the displacement of certain job roles, citing the example of junior developers whose positions are being replaced by tools like github Copilot.
According to IMF projections, artificial intelligence has the potential to impact 40% of jobs worldwide, with developed economies facing a higher risk at 60%. Georgieva emphasized that up to half of the jobs at risk in developed economies could be entirely eliminated. While AI has the capacity to enhance productivity under human supervision, it also poses challenges such as the spread of misinformation and deepening societal inequalities. Georgieva stressed the need for businesses and society at large to prepare for this impending challenge.