The final day of the World Economic Forum in Davos is underway, with the global economy taking centre stage after a week dominated by geopolitical tensions, tariffs and artificial intelligence. European Central Bank President Christine Lagarde, International Monetary Fund chief Kristalina Georgieva and World Trade Organization Director-General Ngozi Okonjo-Iweala are set to speak on the Global Economic Outlook.
The mood has darkened this week, with warnings from German and Canadian leaders about the rise of great powers and anxiety over AI's impact on employment. Lagarde earlier told CNN that US President Donald Trump's escalating threats had undermined trust, saying: 'When you keep repeating the same pattern of undermining the rule of law, undermining the contracts, undermining what has been agreed between parties, then parties begin questioning, is that for real? Is that going to change again? And that's when uncertainty looms large.' She urged Europe to address its economic strengths and weaknesses in case normal relations are not restored.
Kristalina Georgieva warned that artificial intelligence would be a 'tsunami hitting the labour market', with young people worst affected. Citing IMF research, she said: 'We expect over the next years, in advanced economies, 60% of jobs to be affected by AI, either enhanced or eliminated or transformed – 40% globally.' She noted that in advanced economies, one in ten jobs had already been 'enhanced' by AI, boosting pay, but warned that AI would eliminate many entry-level roles, making it harder for young people to find good placements. The middle class would also be affected, she predicted, as those whose jobs are not directly changed by AI risked pay cuts without a productivity boost.
Meanwhile, Demis Hassabis of DeepMind said at a Google event that artificial general intelligence (AGI) was five to ten years away, dismissing suggestions that the industry had already moved beyond AGI. He argued that one or two more breakthroughs, such as in continual learning and better memory, were needed.
The forum is expected to wrap up by lunchtime, with many delegates already having left. The week has been marked by tension, disagreement and geopolitical angst, with AI a hot topic despite Georgieva's regret that there was not more discussion on guardrails.
