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International Monetary Fund (IMF) Managing Director Kristalina Georgieva issued a stark warning on Monday, likening the impact of artificial intelligence (AI) on the global labour market to a "tsunami."
Speaking at an event organized by the Swiss Institute of International Studies, Georgieva predicted that AI could disrupt 60% of jobs in advanced economies and 40% worldwide within the next two years.
"We have very little time to get people ready for it, businesses ready for it," she stressed, highlighting the urgency of adapting to this technological shift.
While acknowledging AI's potential to significantly boost productivity if managed effectively, Georgieva also cautioned about the risks of increased misinformation and inequality.
She pointed to the global pandemic and the war in Ukraine as recent examples of shocks that have made the world economy more vulnerable.
Despite these challenges, Georgieva emphasized that the economy has remained resilient and is not currently in a global recession.
"Last year there were fears that most economies would slip into recession, that didn't happen," she said. "Inflation that has hit us with a very strong force is on the decline, almost everywhere."
Swiss National Bank Chairman Thomas Jordan, who also spoke at the event, echoed Georgieva's optimism about inflation, noting that it has been within the SNB's target range for 11 consecutive months.
However, he acknowledged the ongoing uncertainty surrounding the economic outlook.
