Kristalina Georgieva, the Managing Director of the International Monetary Fund, warned at the annual meeting of this institution in Bangkok about the implications of artificial intelligence for the future of the workforce, describing this technology as a "quiet tsunami" that will soon affect about 40% of jobs worldwide. She added that young workers are particularly at the forefront of vulnerability.
Economic Growth and Job Challenges
Georgieva emphasized at this meeting that despite concerns, the development of artificial intelligence could lead to a 3% growth in the global economy amid the energy crisis. According to estimates by the International Monetary Fund, the boom in artificial intelligence hardware in Asia will help the growth of advanced countries and could mitigate the decline caused by an aging population. In particular, four countries—Taiwan, South Korea, Thailand, and Malaysia—have experienced an average growth of 4.4% above expectations.Read more: Olaf Lies emphasized the job crisis at Volkswagen and economic challenges
For example, South Korea's economic growth reached 7.5% in the first quarter of the year, significantly higher than the April estimate of 1.8%. Georgieva also noted that artificial intelligence hardware now accounts for more than one-tenth of total global merchandise trade, and investment in this area will soon surpass historical investments in infrastructure.
Negative Impacts on the Workforce
However, warnings about the negative impacts of artificial intelligence on job opportunities must be taken seriously. Georgieva likened artificial intelligence to a "slow-moving tsunami" that could change, downgrade, or completely eliminate about 40% of jobs worldwide. This impact is even deeper in advanced economies, reaching about 60% of jobs, while in low-income countries, this figure is around 23%.Young workers, especially recent graduates entering the job market, will be among the first victims of these changes. Given that artificial intelligence performs routine and simple administrative tasks that are typically defined as basic jobs, this group is at significant risk.
Tharman Shanmugaratnam, the President of Singapore, also reminded the meeting that the demand for first jobs for graduates is declining and warned that if governments do not take timely action, the gap between rich and developing countries will deepen.
In addition to the employment crisis, the transfer of income from workers to capital holders could weaken governments' tax resources and increase pressure on public revenues. High costs of technology development and heavy debts of large corporations could also create inflationary pressures that may disrupt financial markets in the event of declining profitability.
Meanwhile, Ajay Banga, the President of the World Bank, announced that the institution is focusing on developing "small AI" tools that specifically address the needs of emerging markets. On the other hand, artificial intelligence could provide a unique opportunity to manage demographic challenges in Asia, especially in countries like China, Japan, and South Korea, which may lose nearly 25% of their active workforce by 2050 due to population aging.
Krishna Srinivasan, Director of the Asia and Pacific Department of the International Monetary Fund, emphasized that policymakers must strike a balance between enhancing workforce capabilities and full automation of jobs. He also noted that implementing reform and training programs in emerging markets could accelerate the adoption of this technology.
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