‘Embrace it, it is coming’: IMF chief warns about the rise of AI

Recent comments from the IMF’s managing director are more than the typical AI replacement fearmongering. They make a clear case for training ahead of the coming digital transformation.

Just before heading to Davos, Switzerland, for the World Economic Forum, the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, warned about the potentially devastating impacts on workers of unfettered artificial intelligence (AI) technologies. Those impacts, she said, will be worst felt in low-income countries.

Sixty per cent of jobs in advanced economies will be affected by the rise of AI compared with only 40 per cent in less economically developed countries. However, the spoils will go to the economic leaders. The impacts of AI won’t necessarily be negative.

“Your job may disappear altogether – not good – or artificial intelligence may enhance your job, so you actually will be more productive and your income level may go up,” said Ms Georgieva.

When we say certain jobs will be ‘affected’ by AI, what do we mean?

It’s important to remember that “affected” does not necessarily mean “replaced”. As mentioned in an earlier HR Leader article, there are, broadly, three ways in which work can be affected by AI. The technology can automate (in other words, replace), augment (human-led but with AI assistance) or adapt (AI-led with human assistance) existing work.

Lower-skilled tasks are more likely to be automated, but this will likely be a much slower rollout than the augmentation and adaptation of mostly higher-skilled work.

Low-income countries

“In emerging markets and developing economies, AI is likely to have less beneficial impacts – something which could exacerbate the digital divide and cross-country income disparity,” Ms Georgieva explained.

“We must focus on helping low-income countries in particular to move faster to be able to catch the opportunities that artificial intelligence will present.”

The overall message? AI is coming whether we like it or not, and early adopters and proactive regulators stand to gain the most.

“Embrace it, it is coming,” she said. “Artificial intelligence, yes, [is] a little scary. But it is also a tremendous opportunity for everyone.”

Older workers

The “digital divide” touched upon by Ms Georgieva exists not just between countries; it can apply to workers of different characteristics, most notably between workers of different generations. According to research from Capterra, Australian workplaces are increasingly labouring under technology-driven generational divides.

“Since 2020, digital adoption accelerated with digital transformation witnessed in operations, customer interactions, cyber security, and collaboration platforms,” said Capterra.

“Now as artificial intelligence seeps into industries and hybrid structures take hold, experts urge companies to bridge gaps to sustain organisational capability.”

Capterra’s survey of over 1,000 employees found that:

• Eighty-five per cent of employees believe job skills are becoming more reliant on the use of digital skills.
• Eighty-three per cent believe their company should provide greater support as new technology is introduced.
• The “usage gap” is the greatest barrier to a faster digital transformation.
• Appetites for new tech are relatively homogenous among age groups, with 87 per cent of Millennials and 85 per cent of Gen Z and Baby Boomers being drawn to the new technologies.

“The appetite is definitely there. It’s a matter of how these employees are facilitated, and bridging the digital generation gap is crucial,” said Greg Weiss, founder of Career365.

To equip a multigenerational workforce with the needed level of technological know-how, Capterra recommends doing the following:

1. Assess digital proficiency levels.
2. Customise training content.
3. Start with the basics.
4. Utilise multiple communication channels.
5. Gather feedback.
6. Provide flexibility.
7. Celebrate progress.

“Generational differences in the workplace can significantly impact communication, collaboration, and employee engagement,” said Capterra.

“Preparing employees of all ages for the digital future ensures companies remain competitive and adaptable in a rapidly evolving technological landscape.”