ZURICH: International Monetary Fund Managing Director Kristalina Georgieva said that Artificial Intelligence (AI) is hitting the international labor market “like a tsunami”.
Speaking at an event in Zurich, Georgieva warned that artificial intelligence is poised to affect 60 percent of jobs in advanced economies and 40 percent worldwide within the next two years. She emphasized the urgency of preparing people and businesses for this transformation, speaking at an event organized by the Swiss Institute of International Studies, affiliated with the University of Zurich.
Georgieva warned against the possibility of growing inequality and disinformation in society, even as she acknowledged the possibility of large productivity gains if handled skillfully.
Georgieva noted that the world economy has become more susceptible to shocks, citing recent events such as the global pandemic in 2020 and the conflict in Ukraine. Despite expectations of further shocks, particularly related to the climate crisis, she remarked on the economy’s resilience, stating, ‘We are not in a global recession.’ However, she faced criticism from protesters urging action on climate change and developing world debt.
Swiss National Bank Chairman Thomas Jordan, also speaking at the event, remarked that Switzerland’s efforts to combat inflation were well advanced. Inflation reached 1.4 percent in April, marking the 11th consecutive month within the SNB’s target range of 0-2 percent.
Jordan expressed optimism about the future outlook for inflation, suggesting stability in the coming years, but acknowledged the presence of significant uncertainty.
