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By Uche Usim
From the International Monetary Fund (IMF) comes a warning that without aggressive investment in skills, infrastructure and inclusive growth, the coming Artificial Intelligence (AI) wave could trigger a global labour market shock that leaves millions behind.
IMF noted that the wave is sweeping so quickly, threatening to upset millions of jobs as AI and technology investment reshape economies faster than workers can adapt.
It added that while global growth appears stable on the surface, the apparent resilience is masking deep vulnerabilities, especially in employment.
In a recent blog, IMF economists, Pierre-Olivier Gourinchas and Tobias Adrian, said global growth is projected to hold at 3.3 per cent this year, slightly higher than earlier estimates.
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Much of this improvement, however, is driven by the United States and China, fuelled largely by a surge in investment in information technology and AI.
However, the IMF noted that the tech-driven boom comes with risks. Investment and market optimism are becoming heavily concentrated in the technology sector, raising concerns about overvaluation, rising debt and what could happen if financial conditions tighten or returns disappoint.
“Trade disruptions and financial imbalances could build up negative growth effects over time,” the IMF economists warned, suggesting today’s growth could mask tomorrow’s instability.
Speaking at the World Economic Forum in Davos, IMF Managing Director, Kristalina Georgieva, described the impact of AI on jobs as a “tsunami” that even the most advanced economies are not fully prepared to handle.
“Even in the best prepared countries, I don’t think we are prepared enough,” Georgieva said, warning that AI is rapidly reshaping labour markets. IMF research shows that about 40 percent of jobs worldwide are already being affected, some positively, others at risk of displacement.
