What happened
The International Monetary Fund (IMF) has warned that artificial intelligence (AI) will have a significant impact on the global job market, with around 40% of jobs being augmented, downgraded, or eliminated by the technology. IMF managing director Kristalina Georgieva described AI as a "slow-moving tsunami" that will change how we work and live.
Georgieva expressed concern that young people will be disproportionately affected, as entry-level jobs are wiped out, robbing them of opportunities to start their careers. She also warned that the impact on jobs will hit public finances, as taxes on income are a major source of revenue for governments.
Singapore President Tharman Shanmugaratnam also sounded the alarm over the impact on graduates, stating that there is a particular problem with the first rung of employment, with less demand for jobs upon graduation. Former Labour cabinet minister Alan Milburn warned of the risks of a "lost generation" as AI and automation threaten entry-level jobs.
Despite the threats posed by AI, Georgieva noted that it has also triggered an investment boom, keeping global growth at around 3% despite soaring energy prices. However, concerns about the impact of AI on jobs and tax receipts remain, with some experts warning that it will increasingly replace labor and restrict hiring.