What AI can do 40% of global employment could be disrupted by Artificial Intelligence. IMF

 

What AI can do 40% of global employment could be disrupted by Artificial Intelligence: IMF

What are the main concerns and opportunities highlighted by the IMF Managing Director Kristalina Georgieva regarding the impact of artificial intelligence (AI) on the global economy and job market?

What is the primary concern of the International Monetary Fund?
 How artificial intelligence is affecting the world's economy?
 What economic impact would the introduction of robots and AI have?
 What is the global impact of artificial intelligence?

Summarize 
IMF Managing Director Kristalina Georgieva warned of the risks posed by the
 spread of artificial intelligence (AI) in terms of job security but also highlighted the opportunities it offers in increasing efficiency. The IMF report predicts that AI will
 affect 60% of jobs in advanced economies and around 40% globally, with higher-skilled jobs being more impacted. However, only half of the jobs impacted by AI
 will be negatively affected, while the rest may benefit from enhanced productivity gains. Georgieva emphasized the need to help low-income countries catch the
opportunities presented by AI. She also mentioned the IMF's upcoming economic forecasts and the challenges faced by the global economy in 2024, including
 fiscal policy pressures and the need to balance monetary and fiscal policies to combat high inflation.


Explain 

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has raised concerns about the potential risks associated with the widespread adoption of artificial intelligence (AI). 

She emphasized that one of the major risks posed by AI is related to job security. However, Georgieva also pointed out that AI presents various opportunities for increasing efficiency in different sectors.

During an interview with AFP, Georgieva referred to statistics from a recent report by the IMF, stating that AI is expected to impact 60% of jobs in advanced economies. In contrast, the impact of AI on jobs in developing countries is anticipated to be around 40% globally.

Georgieva highlighted that the impact of AI will be more pronounced in higher-skilled jobs. She also mentioned that the IMF report, which was released on Sunday, indicates that while half of the jobs affected by AI may experience negative consequences, the other half could benefit from increased productivity resulting from AI implementation.

"The 70-year-old expressed that your job might completely disappear, which is not ideal, but on the other hand, artificial intelligence could improve your job, leading to increased productivity and higher income," according to the IMF report on AI. 

The report also anticipated that emerging markets and developing economies may experience a smaller initial impact from AI but are less likely to benefit from the increased productivity in the workplace. The focus should be on assisting low-income countries to seize the opportunities presented by artificial intelligence. Despite the potential fears associated with AI, it also presents significant opportunities for everyone. 

The IMF is set to release updated economic forecasts, indicating that the global economy is on track to meet its previous projections. The director emphasized the need for a soft landing in the economy and highlighted the delicate balance in monetary policy.

 The IMF predicts continued modest growth in the global economy and recognizes the need for an AI-related productivity boost. Georgieva emphasized the challenges that 2024 may bring, particularly in fiscal policy worldwide, as countries address debt burdens from the COVID-19 pandemic and strive to rebuild depleted buffers. 

Additionally, billions of people will vote in elections, creating pressure on governments to either increase spending or reduce taxes to gain popular support. The IMF is concerned that excessive government spending could undermine the progress made in combating high inflation if monetary policy tightens and fiscal policy expands in contradiction to the goal of reducing inflation.