Artificial intelligence hitting labour forces like a ‘tsunami’ – IMF Chief

Artificial intelligence is hitting the global labour market “like a tsunami” International Monetary Fund Managing Director Kristalina Georgieva said.

Georgieva told an event in Zurich that artificial intelligence is likely to impact 60% of jobs in advanced economies and 40% of jobs worldwide in the next two years.

“We have very little time to get people and businesses ready for it,” she said at the event organized by the Swiss Institute of International Studies, which is associated with the University of Zurich.

“It could bring tremendous increase in productivity if we manage it well, but it can also lead to more misinformation and, of course, more inequality in our society.”

Georgieva said the world economy had become more prone to shocks in recent years, citing the global pandemic in 2020 and the war in Ukraine.

Although she expected more shocks, mainly due to the climate crisis, she remained remarkably resilient.

“We are not in a global recession,” said Georgieva, who was heckled by protesters calling for action on climate change and tackling developing world debt.

“Last year, there were fears that most economies would slip into recession; that didn’t happen,” she said. Inflation, which has hit us with a very strong force, is on the decline, almost everywhere.”

Swiss National Bank Chairman Thomas Jordan, who also spoke at the event, said the fight against inflation in Switzerland was far advanced.