TechFlow News, January 24: According to JIN10 Data, while Donald Trump did not dominate headlines, artificial intelligence (AI) was the hottest topic at this year’s Davos summit. Yet, even as tech executives diligently sustained enthusiasm for their products, more pragmatic voices this year were equally impossible to ignore—one of them being Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF).
In a panel discussion on Friday, Georgieva stated that AI is already disrupting global labor markets by altering the skill sets employers demand—and may even boost incomes for some workers by enhancing productivity.
For others, especially young people, however, the result is a reduction in entry-level tasks and a shrinking pool of available jobs. Georgieva described AI as “a tsunami hitting the labor market” for those just entering the workforce.
Georgieva cited IMF research finding that AI could affect approximately 60% of jobs in advanced economies—and 40% globally.
Among these affected jobs, roughly half of workers may benefit from AI; for the rest, critical tasks previously requiring human input are likely to be automated instead. This could lead to lower wages and slower hiring.
For entry-level positions—particularly those involving clerical tasks—AI may sound the death knell.
