MIAMI.- Technological development has led to artificial intelligence advancing by leaps and bounds and although it is a “tremendous opportunity” to boost productivity levels, there is a risk that many people will lose their jobs.
These statements were offered by the director of the International Monetary Fund (IMF) Kristalina Georgieva, before leaving for the World Economic Forum, in Davos, Switzerland, an annual event where countries discuss the challenges of global economic trends.
Artificial intelligence (AI) poses risks to job security around the world, but also offers a “tremendous opportunity” to boost sagging productivity levels and fuel global growth, the official of the multilateral entity told AFP.
“Advanced economies and some emerging markets will see 60% of their jobs affected,” added Georgieva, citing an IMF report on the subject. This figure drops to 40% in emerging markets and 26% for low-income countries where technological advances arrive later.
That means AI will have less impact in emerging markets and poorer developing economies, but they are also less likely to benefit from the technological advantages that AI offers, according to the FMI. This means that there is less presence of AI in these countries, but more jobs are still preserved.
On average, almost 40% of global employment is exposed to artificial intelligence, insisted the official of the multilateral organization, who projects that more than half of the jobs will be negatively affected, while the rest can benefit from the increase in productivity due to to AI, a dilemma that countries have because they must try to maintain a balance between less productive employment versus highly qualified jobs thanks to the new tools offered by artificial intelligence.
This could exacerbate the digital divide and income disparity between countries, reveals the report, cited by Georgieva, who adds that older workers will probably be more vulnerable to the change that AI will bring.
“Your job may disappear completely, which is not good, or artificial intelligence may improve your job, so that you are more productive and your income level increases,” Georgieva added to put a high-impact issue on the radar. at that World Forum in Davos.
The IMF sees an important opportunity for policy prescriptions to help address these concerns. “We must focus on helping low-income countries, in particular, move faster to take advantage of the opportunities that artificial intelligence will present,” he said.
In his opinion, artificial intelligence “must be embraced… “yes, it is a little scary. But it is also a tremendous opportunity for everyone.” The global economy could use an AI-related productivity boost, with the IMF forecasting it will continue to grow at historically low levels over the medium term.
A hard year
Speaking on another topic, Georgieva stated that 2024 will likely be “a very tough year” for fiscal policy around the world, as countries try to cope with the debt burden accumulated during the Covid-19 pandemic, and rebuild. depleted reserves.
Additionally, billions of people will go to the polls this year, putting additional pressure on governments to increase spending or reduce taxes to win popular support.
The IMF’s concern is that governments around the world will spend too much this year and undermine the progress they have made so hard to achieve in the fight against high inflation, the macroeconomic issue par excellence discussed on that world stage in Switzerland.
Source: AFP
