IMF Describes AI's Impact on Jobs
The IMF chief says that massive investment in artificial intelligence has kept global economic growth at around three percent and brought significant benefits to Asia, but the technology also shows ominous signs of a "gradual, creeping tsunami." The IMF's description of AI's impact on jobs first appeared on Safir Arjan.
According to Ambassador Arjan, Kristalina Georgieva says that the investment boom in artificial intelligence has already led to a "demand and investment shock" which, according to her, can increase the growth of developed Asian economies between half and one percentage point and the growth of emerging Asian economies between 0.2 and 0.8 percentage points.
Georgieva said on the first day of the one-week meetings of the International Monetary Fund and the World Bank in Bangkok, the capital of Thailand: "Artificial intelligence has arrived, whether you like it or hate it." This acceleration has caused the world economy to grow by around three percent, despite the pressure caused by the energy supply shock.
In July, the International Monetary Fund forecast global economic growth of 3% in 2026 and is due to release an update of its estimates tomorrow.
Artificial intelligence lurks in 40% of the world's jobs!
In response to a question about the negative impact of artificial intelligence on employment, Georgieva added: International Monetary Fund research shows that artificial intelligence will affect about 40% of jobs worldwide, and this figure may reach 60% in advanced economies. This effect can appear in the form of promotion of job duties, degradation of some jobs or their complete elimination.
According to Reuters, this will have profound implications for employment, economic growth and education, and will even change the way governments generate revenue through taxes, as labor's share of the economy is expected to decline and capital's share to rise.
Already in the US, AI-related skills are required in 10 percent of jobs, according to the findings of a preliminary study. While the number of routine and repetitive jobs is decreasing, the number of low-wage jobs in both the construction and data center sectors has increased.
Noting that an artificial intelligence assistant now gives him a 30-second report on his daily schedule every morning, the head of the International Monetary Fund said that "artificial intelligence is a transformative technology and will completely change the way we work and live."
According to him, "America, China and India are the most important producers in the supply chain of artificial intelligence, but many companies that supply the hardware needed to create the infrastructure of this technology are located in Asia (including Thailand)."
The impact of artificial intelligence on non-specialized jobs
Tharman Shanmugaratnam, the President of Singapore, also emphasized in the same meeting that governments should think about the impact of artificial intelligence on the reduction of job opportunities for graduates.
According to him, "There is a specific problem that we must deal with very soon; "The first step to entering the labor market, the first job after graduation, is now facing a decrease in demand."
He also warned that the world should resist the formation of a new gap in economic growth and creation of job opportunities between developing countries and advanced economies; According to him, the gap may arise as a result of the expansion of artificial intelligence.