Kristalina Georgieva, head of the International Monetary Fund (IMF), stated at the World Economic Forum that artificial intelligence (AI) is anticipated to significantly impact the labor market, describing its effect as a "tsunami."
IMF research indicates that approximately 60% of jobs in advanced economies and 40% globally are expected to be affected by AI, through enhancement, elimination, or transformation. Georgieva noted that in advanced economies, one in ten jobs has already been enhanced by AI, potentially boosting workers' pay and benefiting local economies.
Conversely, Georgieva cautioned that AI could eliminate numerous roles typically held by younger workers, making it more challenging for them to secure good entry-level positions. She also suggested that individuals whose jobs are not directly altered by AI might experience reduced pay if they do not receive a productivity boost from the technology, potentially impacting the middle class.
A key concern raised by Georgieva was the insufficient regulation of AI. She emphasized the rapid pace of AI development and the lack of clarity on how to ensure its safety and inclusivity.
Christy Hoffman, general secretary of the UNI global union, articulated that the business objective of AI is to increase productivity and reduce costs, which often translates to job reductions. She called for strategies to manage this disruption and ensure the equitable distribution of AI's productivity benefits, urging employers to consult with workers and their representatives before implementing AI tools.
Microsoft CEO Satya Nadella previously warned at the forum that AI risks losing its "social permission" to utilize resources like energy if its benefits are not broadly shared beyond a few powerful technology companies.
Christine Lagarde, president of the European Central Bank (ECB), added that growing mistrust among rival economies and the imposition of tariff barriers could impede the AI boom. She highlighted global interdependence, noting that AI is capital, energy, and data intensive. Lagarde also raised concerns about widening global inequality, though she expressed a less pessimistic outlook on the global economic order than some other delegates, advocating for a focus on "alternatives" rather than a complete "rupture."