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AI hitting labour forces like a ‘Tsunami’, says IMF chief Kristalina Georgieva

IFM_Kristalina Georgieva
IMF chief Kristalina Georgieva mentioned that the world economy has become more susceptible to shocks in recent years, citing the global pandemic in 2020 and the war in Ukraine

Artificial intelligence is having a significant impact on the global labour market, described as hitting “like a tsunami” by International Monetary Fund Managing Director Kristalina Georgieva.

She stated that artificial intelligence is expected to affect 60% of jobs in advanced economies and 40% of jobs worldwide within the next two years during an event in Zurich.

In an event organised by the Swiss Institute of International Studies, associated with the University of Zurich, Kristalina Georgieva said, “We have very little time to get people ready for it, businesses ready for it. It could bring a 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.”

Kristalina Georgieva mentioned that the world economy has become more susceptible to shocks in recent years, citing the global pandemic in 2020 and the war in Ukraine.

She also anticipated more shocks, especially due to the climate crisis, but noted that the economy has remained remarkably resilient.

“We are not in a global recession,” stated Kristalina Georgieva, who faced heckling from protesters demanding action on climate change and addressing developing world debt.

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

Swiss National Bank Chairman Thomas Jordan, who also spoke at the event, stated that the battle against inflation in Switzerland has made significant progress.

In April, inflation increased to 1.4 per cent, marking the 11th consecutive month of price rises within the SNB’s target range of 0-2 per cent.

“The outlook for inflation is much better. It looks that for the next few years, inflation could be really in the same range of price stability. But there is a lot of uncertainty,” Thomas Jordan said.

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