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IFM_IMF chief Kristalina Georgieva

Will artificial intelligence impact job market? IMF gives its take

According to the IMF analysis, half of the occupations that AI affects will suffer, while the remaining half may gain from increased productivity as a result of AI

Artificial intelligence (AI) will impact 60% of jobs in industrialized nations, IMF Managing Director Kristalina Georgieva said soon before heading for the World Economic Forum in Davos, Switzerland.

“60% of jobs in advanced economies and some emerging markets will be impacted,” the International Monetary Fund boss stated in a Washington interview, referencing research on the subject released on January 2024 by the International Monetary Fund.

“And then it goes down to 40%, for emerging markets, and 26% for low-income countries,” she continued, citing an IMF report that states that AI is used in nearly 40% of jobs worldwide overall.

According to the IMF analysis, half of the occupations that AI affects will suffer, while the remaining half may gain from increased productivity as a result of AI.

“Your job may disappear altogether — not good — or artificial intelligence may enhance your job, so you actually will be more productive and your income level may go up,” Kristalina Georgieva stated to AFP.

According to the IMF, emerging markets and developing economies would initially be less affected by AI, but they will also be less likely to gain from the benefits of this innovative technology.

The research went on to say, “This could exacerbate the digital divide and cross-country income disparity,” noting that older workers are probably more susceptible to the changes brought about by AI.

According to Kristalina Georgieva, who spoke to AFP, the IMF sees a significant chance for policy recommendations to help solve these issues.

“We must focus on helping low-income countries in particular to move faster to be able to catch the opportunities that artificial intelligence will present,” she stated.

“In other words, embrace it, it is coming,” she stated. Therefore, artificial intelligence is a little unsettling.

“However, everyone has a fantastic opportunity as well,” Kristalina Georgieva concluded.

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