IMF chief compares AI impact on labour to a ‘tsunami’

AI is poised to drastically reshape the global labour market, according to International Monetary Fund Managing Director Kristalina Georgieva. She likened its impact to a ‘tsunami’, projecting that 60% of jobs in advanced economies and 40% worldwide will be affected within the next two years. Georgieva emphasised the urgency of preparing individuals and businesses for this imminent transformation, speaking at an event organised by the Swiss Institute of International Studies in Zurich.

While AI adoption promises significant gains in productivity, Georgieva warned against potential downsides, including the proliferation of misinformation and the exacerbation of societal inequality. She highlighted the recent vulnerabilities of the world economy, citing shocks like the 2020 global pandemic and the ongoing conflict in Ukraine. Despite these challenges, she noted a resilience in the global economy, with no imminent signs of a widespread recession.

Addressing concerns about inflation, Swiss National Bank Chairman Thomas Jordan emphasised progress in Switzerland’s inflation management. With inflation reaching 1.4% in April, remaining within the SNB’s target range for the 11th consecutive month, Jordan expressed optimism about maintaining price stability in the coming years. However, he acknowledged lingering uncertainties surrounding future economic trends.