IMF Chief calls AI a ‘tsunami’, says 40% jobs will be affected, calls it a big opportunity for India

In India AI Impact Summit held in New Delhi international Kristalina Georgieva, Managing Director of the Monetary Fund, described Artificial Intelligence (AI) as a “tsunami”-like force for the global economy (Kristalina Georgieva AI Speech). He said that AI is a double-edged sword. While it can accelerate the global growth rate, it can also have a deep impact on the labor market.

AI will increase global GDP

According to the IMF chief, AI could boost global GDP growth by 0.8 percentage points annually. With this, faster economic expansion than the pre-Covid level is possible. Calling it a “fantastic opportunity”, he said increased productivity could lead to the creation of new sectors and new jobs.

He expressed special confidence about India (Kristalina Georgieva AI Speech). He said that due to strong digital public infrastructure, young population and startup ecosystem, India can take rapid steps towards the goal of becoming a developed nation by 2047 by taking advantage of AI.

But warning of danger to 40% jobs

Along with the enthusiasm, the IMF also issued a serious warning. According to the organization’s research, AI can affect about 40% of jobs globally. This impact could be up to 60% in developed economies and around 40% in emerging markets. Georgieva called it a “tsunami on the labor market,” saying entry-level jobs are most at risk.

According to him, some jobs will disappear completely, some will change in nature and some will become more skilled and higher paid. If the right policies and skill development programs are not implemented, there is a danger of inequality increasing.

Nandan Nilekani’s perspective

During the same program, Nandan Nilekani said that the AI ​​revolution will not be limited to coding only (Kristalina Georgieva AI Speech). The real role in the future will be to design, orchestrate, and effectively implement AI systems in business.

He estimated that AI could create about 170 million new high-skilled jobs globally, such as AI engineers, data forensics experts, AI leads and advanced technology operators. However, roles like basic coding and traditional QA may gradually diminish.

What is the way forward?

Experts believe that skill development, re-skilling, education reforms and strong policy framework will be required to handle the changes arising from AI. For a young country like India, this is a challenge as well as a historic opportunity where AI can be made an engine of development by adopting the right strategy.