ZURICH: Artificial intelligence is hitting the global labor market “like a tsunami,” International Monetary Fund managing director Kristalina Georgieva said on Monday.
Artificial intelligence is likely to impact 60% of jobs in developed economies and 40% of jobs globally in the next two years, Georgieva said at an event in Zurich.
“We have very little time to prepare people and companies for this,” she said at an event organized by the Swiss Institute of International Studies affiliated with the University of Zurich.
“This could bring huge productivity gains if we get it right, but it could also lead to more misinformation and, of course, more inequality in our society.”
Georgieva said the global economy has become more vulnerable to shocks in recent years, citing the global pandemic in 2020 as well as the war in Ukraine.
Even though she expected more shocks, especially due to the climate crisis, she remained remarkably resilient, she said.
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“We are not in a global recession,” Georgieva said, concerned about protests calling for action on climate change and tackling the developing world’s debt.
“There were fears last year that most economies would fall into recession, but that didn’t happen,” she said. “Inflation, which hit us very demanding, is falling almost everywhere.”
Swiss National Bank President Thomas Jordan, who also spoke at the event, said that the fight against inflation in Switzerland is now well advanced.
Inflation rose to 1.4% in April, the 11th consecutive month in which price increases have been within the SNB’s target range of 0-2%.
“The inflation outlook is much better. “It looks like inflation may actually be in the same price stability range for the next few years,” Jordan said.
“But there is a lot of uncertainty.”
(Reporting by John Revill; Editing by Dave Graham)
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