Speaking on one event Organized by the Swiss Institute for International Studies, International Monetary Fund Director Dr Kristalina Georgieva warned of an AI-induced ‘tsunami’ that could hit the labor market.
Georgieva painted a picture of a “slowly moving tsunami” that will disrupt the employment landscape around the world as companies continue to adopt and integrate artificial intelligence solutions designed to improve efficiency and productivity.
Citing forecasts, the MD warned that AI could impact around two in five jobs globally, or as many as three in five in advanced economies such as the US and UK.
Could AI take our jobs after all?
Despite the IMF’s worrying outlook, the IMF boss emphasized that the outcome does not need to be predetermined and urged proactive management to use AI for its productivity benefits.
Georgieva summarized (via Reuters): “It could deliver a huge increase in productivity if we manage it properly, but it could also lead to more misinformation and of course more inequality in our society.”
The boss warned that “we have very little time to get people ready,” implying the urgency of taking the right steps to reap the benefits of the technology while protecting workers.
While many have argued that AI only serves to improve employee productivity and not to completely replace human workers, others are concerned that companies will have to hire fewer workers as a direct result of this improved productivity.
Early this year, Google fired a number of employees in its advertising department, with AI reportedly blamed. There have already been more than 83,000 layoffs, due to a mix of AI-induced layoffs and cost-cutting measures.