IMF Chief Warns of Major Job Disruptions Due to AI

The International Monetary Fund‘s Managing Director, Kristalina Georgieva, has warned that artificial intelligence (AI) will significantly disrupt the global labour market. Speaking at an event organised by the Swiss Institute of International Studies in Zurich on Monday, Georgieva likened the impact of AI on jobs to a “tsunami.”

Georgieva highlighted that AI is expected to affect 60% of jobs in advanced economies and 40% of jobs worldwide within the next two years. She emphasised the urgency of preparing both people and businesses for these changes.

“We have very little time to get people ready for it, businesses ready for it,” Georgieva stated. She noted that while AI has the potential to boost productivity, it also poses risks such as increased misinformation and greater inequality.

Georgieva also addressed the broader context of economic instability, pointing to recent shocks such as the COVID-19 pandemic and the war in Ukraine. Despite anticipating further disruptions, particularly due to climate change, she maintained that the global economy has shown remarkable resilience.

“We are not in a global recession,” Georgieva said, countering previous fears that many economies would fall into recession last year. She added that inflation, which had surged significantly, is now declining in most regions.

Swiss National Bank Chairman Thomas Jordan, also speaking at the event, discussed Switzerland’s progress in combating inflation. He reported that inflation in Switzerland rose to 1.4% in April, marking the 11th consecutive month within the SNB’s target range of 0-2%.

“The outlook for inflation is much better. It looks that for the next few years, inflation could be really in the same range of price stability,” Jordan said, although he acknowledged ongoing uncertainties.

The event was marked by protests, with demonstrators urging action on climate change and addressing developing world debt.