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Lay-off paradox: AI boosts productivity → Stocks rise. AI replaces workers → Unemployment rises → Stocks fall. What's next? Will the U.S. Federal Reserve implement UBI for all citizens? Will major economies reduce global trade dependencies on the U.S.? Need for regulation: There's an urgent need for an AI ministry to regulate and control AI implementations to protect capitalism.

🌐 **AI Will Transform the Global Economy. Let’s Make Sure It Benefits Humanity.** 🤖 Artificial intelligence (AI) is poised to revolutionize the global economy, but we must tread carefully to ensure its positive impact. Here are some thoughts on how we can harness AI for the greater good: 1. **Balancing Act**: AI will touch nearly **40% of jobs worldwide**, either replacing some roles or complementing others. As we navigate this transformation, we need a delicate balance of policies that tap into AI's potential while safeguarding humanity's interests¹. 2. **Reshaping Work**: Historically, automation and technology affected routine tasks. However, AI's unique ability to impact high-skilled jobs sets it apart. In advanced economies, around **60% of jobs** may be influenced by AI. While half of these jobs could benefit from AI integration, the other half might see key tasks executed by machines, potentially lowering labor demand and wages¹. 3. **Global Disparities**: Emerging markets and low-income countries face fewer immediate disruptions from AI, with exposure rates of **40% and 26%**, respectively. However, lacking infrastructure and skilled workforces, they risk exacerbating inequality over time¹. 4. **Inequality Within Nations**: AI could also widen income and wealth gaps within countries. Those who can harness AI may see productivity and wage increases, while others fall behind. Research suggests that AI can help less experienced workers enhance their productivity more quickly¹. 5. **Guided Approach**: To maximize AI's benefits, advanced economies should prioritize innovation and integration while developing robust regulatory frameworks. This approach fosters a safe and responsible AI environment, maintaining public trust¹. Let's embrace AI's potential while ensuring it serves humanity's best interests. 🌍💙 ---

The world may witness a transformation similar to the Industrial Revolution due to increased investment in AI, low-carbon transition, and global supply chain restructuring. Uncertainties persist due to sticky inflation, higher interest rates, and weaker growth. Companies need to adapt, especially by leaning into the AI, and be ready for potential macroeconomic volatility.</div><div class="read-more"><a href="" class="more-link">Continue reading</a>https://lnkd.in/g3fawm3Q

Unveiling the future with the IMF's "Gen-AI: Artificial Intelligence and the Future of Work" report! Brace for a global economic shift as AI promises productivity peaks, but sparks concerns on job displacement. Nearly 40% of global jobs are on the AI radar, with advanced economies facing higher risks yet better positioned to reap benefits. Labor market impact varies—60% of jobs in advanced economies are exposed while emerging markets and low-income countries see lower exposure. Are we ready for the AI revolution? #CSR_India #FutureOfWork #IMFInsights #EconomicShift

Verizon Consumer CEO and client Sowmyanarayan Sampath's recent Fortune byline explores the transformative potential of AI to address inflation. Read the full article on Fortune to explore Sampath's vision for a future where AI drives economic growth and resilience.

AI is crucial in managing the economic uncertainty caused by rising inflation and unemployment. As the Producer Price Index (PPI) increased by 0.2% in August, businesses face higher production costs, and AI can help by automating tasks, optimizing supply chains, and adjusting pricing to maintain efficiency. Additionally, AI can help businesses adapt to labor market changes by automating routine processes and upskilling workers for higher-level roles, addressing workforce fluctuations. Governments and financial institutions can leverage AI for real-time economic monitoring and predictive analytics, enabling data-driven decisions to manage inflation and unemployment more effectively. In financial markets, AI enhances trading strategies and risk management during economic volatility, providing more stability and foresight. Overall, AI plays a crucial role in helping businesses and institutions navigate inflationary pressures, labor market changes, and economic instability, ensuring smarter decision-making, enhanced resilience, and cost efficiency in challenging times. Dr.Koay #AI #PPI #usa #inflation #AIautomation #AIbusiness #AIdecisionmaking #AIinflation #economicuncertainty #AIfuture #AIcostcutting #AIfinance #AIsupplychain Photo: advisorperspective.com

🌐 IMF Managing Director Kristalina Georgieva on How 60% of Advanced Economy Jobs Could Be Affected by AI 🤖 AI is reshaping industries, with potentially 60% of jobs in advanced economies feeling its impact. While half may see benefits, the other half faces challenges as AI takes over human tasks, potentially affecting wages and job security. 💡 Kristalina's nod to Keynes reminds us of the historical context of technological disruption. It's a call to action for collaboration, innovation, and policies to ensure a future where AI benefits all. 🦾 Let's harness AI's potential for inclusive growth, empowering workers, and shaping a future where technology serves humanity. #AI #FutureOfWork #Innovation #IMFInsights

Interesting perspective Sowmyanarayan Sampath shared with very valid points. From the broad spectrum of customers and partners I have spoken with it's evident that AI's role in boosting productivity & innovation are in many ways contributors to curbing inflation. When some talk about automation, people tend to think about job losses. I would argue tools like AI and automation lead to, in at least just one case, a whole new host of jobs (think about the iPhone and its rise in adoption from flip phones). The glass for Apple iPhones is primarily manufactured by Corning Inc. who has dedicated facilities that solely produce glass for the phones we use. Manufacturing, developer, operational, support, and other jobs all created thanks to the adoption of the phone we all carry and the interactions and experiences we have with it. #AI could be a boost to the economy or a potential threat. Careful planning and investment in retraining programs are crucial to ensure AI benefits all and the economy at large. #automation #AIAdoption #Inflation #InflationReduction

Inflation may have moderated in recent months, but it hasn’t been enough or as much as anyone would like. We need new tools to combat rising costs. History tells us technology has been a disinflationary force before—think about the microchip. In today’s age, #AI could be the best long-term disinflationary force in a challenging global economy. Companies that embrace AI now will be well-positioned to drive productivity and combat inflation in the coming decades. I shared my thoughts on AI as a disinflationary force in Fortune, let me know if you agree or disagree.

Sampath, Very insightful indeed. I believe that AI could be more of a "V" effect. Use of AI will transform from "How to use AI to achieve efficiencies through productivity gains" To=> "Necessary to compete and survive" , This realization will lead to massive investments in AI and support infrastructure which will lead to rapid economic growth. I believe in the short term the investments in AI technology, resources, human skills will trump the impact of cost efficiencies which will create inflationary pressures, Over a period of time as these investments pan out, efficiencies will start having a visible impact into the economy. Not to say we will not see a glut of overinvestment as we did in the dot com bubble and as you may very will remember in Fiber, which will lead to over supply and ultimate drop in prices. All in all the smartest investments will have very high ROI while fad driven low quality investments will ultimately go to waste. Exciting times !!!