‘Like a tsunami’: IMF Chief warns AI threatens 40% of jobs worldwide

The IMF Managing Director Kristalina Georgieva has discussed the potential impacts of artificial intelligence on workforce and labour markets globally at the World Economic Forum in Davos.

Dubbing AI as a powerful “tsunami”, Georgieva said, “the AI will hit the labour markets, heralding a big transformation of demand for skills in the face of widespread tech-related advancements.

According to the chief of a global lender, “We expect over the next few years, in advanced economies, 60% of jobs to be affected by AI, either enhanced or eliminated or transformed – 40% globally. This is like a tsunami hitting the labour market.”

She also shed light on how in developed economies, 1 in 10 jobs had already been “enhanced” by AI. As a result, the workers have been experiencing an uptick in wages along with knock-on benefits for the local economy.

On the contrary, artificial intelligence could also take over many traditional roles which are currently performed by young workers or the middle class, Georgieva warned.

“Tasks that are eliminated are usually what entry-level jobs do at present, so young people searching for jobs find it harder to get a good placement,” she added.

Talking about the safety measures, she said, “This is my biggest worry: where are the guardrails?”

While urging the need for safety and inclusivity, Georgieva said, “My appeal is, wake up. AI is for real, and it is transforming our world faster than we are getting a handle on.”