IMF Forecasts 40% Global Job Disruption and Growing Income Inequality Due to Artificial Intelligence

The managing Director of the International Monetary Fund Kristalina Georgieva has warned about the potential risks associated with artificial intelligence. One of the concerns highlighted by Georgieva is the impact on job security due to automation.

However, she highlighted the opportunities presented by Artificial intelligence and its potential to enhance efficiency across various sectors. While giving her opinion in an interview, she said according to global statistics, artificial intelligence will replace 60% of jobs in the advanced sector.

It is estimated that 40% of jobs could be affected by the influence of AI, and it is less influential in developing countries. The more you have an advanced job, the higher your risk chance.

The report from the IMF on Sunday says half of the jobs will be negatively impacted due to artificial intelligence. The other half might get better because AI can help make things more productive. Either you will lose your job, or with the help of AI, your income will go up, said a 70-year-old man.

According to IMF reports, developing countries’ effect of AI on jobs might not be as big at first. However, these countries are also less likely to experience the positive improvements in productivity that AI can bring to the workplace.

We must focus on helping less privileged countries where AI has not bigger impact, so the people there can benefit from artificial intelligence, Said Georgieva.

Earlier this month, the IMF is expected to release updated economic forecasts confirming the global economy is on track. She added that the actions taken through monetary policy (decisions related to money supply and interest rates) are effective. We are in the phase where managing the balance between things should be the priority.

IMF predicts that it could use AI productivity to boost the global economy, and it will grow at levels that are not very high compared to historical standards.

Georgieva emphasized the importance of increasing productivity, stating that the world’s future may only be very positive if we discover a way to improve productivity.

Raising concerns about the debt of countries she said 2024 is likely to be a very tough year, and most countries will try to minimize the burden of debt which accumulated in 2024. Approximately 80 countries are going to have elections this year.

Georgieva said she is concerned that governments will spend big this year and undermine their hard-won progress against inflation. If we increase interest rates and boost government spending, we could face a more prolonged and challenging economic situation,” she added.