TechFlow TechFlow on January 24th, citing Jinshi Data, with Trump not dominating the spotlight, artificial intelligence was undoubtedly the hottest topic at this year's Davos Summit. However, while tech executives diligently maintained buzz around their products, some more pragmatic calls for action couldn't be ignored this year. IMF Managing Director Kristalina Georgieva was one of them.
During a panel discussion on Friday, Georgieva stated that artificial intelligence is already disrupting the global labor market by altering employers' skill requirements and could even increase the income of some workers by boosting productivity.
But for others, especially young people, the result is a reduction in entry-level tasks and a shrinking job pool. Georgieva points out that for those just entering the workforce, artificial intelligence is "like a tsunami impacting the labor market."
Georgieva cited IMF research that found artificial intelligence could impact about 60% of jobs in advanced economies, compared to 40% globally.
Of these affected jobs, about half of the workers may benefit from artificial intelligence, but for the rest, critical tasks that once required human input are likely to be replaced by automation. This could lead to lower wages and a slowdown in hiring.
For entry-level positions, especially those involving clerical tasks, artificial intelligence may be sounding the death knell.
