Approximately 40 percent of jobs globally will be disrupted by artificial intelligence (AI) in the next few years, according to Kristalina Georgieva, the chief of the International Monetary Fund (IMF). Speaking at the World Government Summit (WGS) 2024, Georgieva highlighted the need for countries to be prepared for the impact of AI, stating that while some jobs will disappear, new ones will also emerge and existing jobs will be transformed.
Georgieva praised the United Arab Emirates (UAE) for its level of preparedness, but noted that many countries are falling behind in their readiness for the arrival of AI. She emphasized the importance of digital infrastructure and accessibility to ensure skills development in the new AI-driven world.
AI will be a major focus of the WGS 2024, with over 100 leaders from AI companies attending to discuss solutions and strategies for governments to keep pace with AI developments and harness its potential while navigating its challenges.
Georgieva also addressed the economic outlook for the Middle East and North Africa, stating that the expected GDP growth for the region this year is projected to be 2.9 percent, lower than previously anticipated. She attributed this to factors such as the temporary cut in oil production, the impact of the Gaza-Israel conflict, tight monetary policies, and slow growth outside the hydrocarbon sector.
Speaking specifically about the Gaza conflict, Georgieva described its devastating economic impact not only on Gaza but also across the region and the world. She highlighted the sharp decline in economic activity in Gaza and the West Bank and how the conflict has affected sectors like tourism and freight volume. She emphasized the urgent need for a durable peace and political solution to reverse the bleak economic prospects for the Palestinian economy.
In conclusion, Georgieva stressed the importance of countries being prepared for the disruptive effects of AI on jobs, with the UAE standing out as a model of readiness. She called for investment in digital infrastructure and the development of skills to navigate the new AI-driven world. Additionally, she highlighted the need for a resolution to the Gaza conflict to prevent further economic risks and secure a better future for the region.
