Impact of AI on labour market will be like ‘tsunami’: IMF chief
New Delhi: The impact of AI on the labour market will be like a “tsunami” and can create havoc in financial markets, International Monetary Fund chief Kristalina Georgieva said on Friday, while estimating that it can lift global growth by 0.8%.The IMF managing director estimated that nearly 40% of jobs in emerging markets and 60% in developed economies may be impacted by AI.“It will eliminate some jobs while enhancing others, and we have no idea how to help people find their place in the AI economy. There should be mindful efforts to manage the transition,” she said.Georgieva also cautioned that AI could widen inequality between individuals and countries, with some benefiting significantly while others are left behind. “If AI gets loose, it can create havoc in financial markets. But on balance, my appeal to all of us is to embrace the opportunities, be mindful of the risks, and manage them,” she said.While being optimistic about the tech, Georgieva cautioned against “sugarcoating” the impact of AI and called for striking a balance between building and managing AI as a ‘force for good or evil’.On the positive side, she said: “AI can lift global growth by almost a percentage point. It will mean that the world will grow faster than it did before the Covid pandemic. And that is fantastic for creating more opportunities, more jobs. This is the magnitude that we see for India, and it would mean that India’s Viksit Bharat is achievable.”She said AI creates potential for countries that go fast on digital infrastructure, skills, and adoption of AI, and countries must embrace the opportunities, while being mindful of the risks.Georgieva identified three risks: making countries and world less fair (for tech haves and have nots), financial stability as it may impact markets and displacement of jobs.Even earlier, IMF had cautioned on AI, arguing that some of the US investments boom in AI may turn out to be a bubble, like the dot-com bust at the start of the millennium.
