IMF Managing Director Kristalina Georgieva warns that AI is impacting the global labor market “like a tsunami.” Speaking at a Swiss Institute of International Studies event, she predicted that AI would affect up to 60% of jobs in advanced economies and 40% of jobs globally within the next two years.
Georgieva urged proactive measures, stating, “We have very little time to prepare people and businesses for this change.” She noted that while AI could significantly boost productivity, it could also lead to increased misinformation and greater inequality.
Reflecting on recent global economic shocks, including the 2020 pandemic and the war in Ukraine, Georgieva highlighted the world’s heightened vulnerability to disruptions. Despite these challenges, she affirmed that “We are not in a global recession,” addressing concerns raised by climate change and developing world debt protesters.
Georgieva added, “Last year, fears of widespread recession did not materialize,” and noted that inflation is declining almost everywhere.
Swiss National Bank Chairman Thomas Jordan, also speaking at the event, discussed Switzerland’s advanced progress in combating inflation, which was at 1.4% in April. He stated, “The outlook for inflation is much better,” although he acknowledged ongoing uncertainties.
