The rapid advancement of Artificial Intelligence (AI) is threatening to reshape the global labour market, with the International Monetary Fund (IMF) warning that approximately 40 per cent of jobs worldwide could be affected by the technology.
IMF Managing Director Kristalina Georgieva has sounded the alarm over the potential consequences of AI adoption, describing its impact on employment as a “slow-moving tsunami” that could transform existing roles, reduce the value of certain jobs and render others redundant.
Her warning comes as businesses and governments increasingly embrace AI to improve productivity, automate routine tasks and accelerate economic growth. However, beneath the promise of technological progress lies a growing concern that millions of workers could struggle to adapt to an increasingly automated economy.
Speaking at a panel discussion titled “Small Scale AI: More and Better Jobs” during the 2026 IMF/World Bank Annual Meetings in Bangkok, Thailand, on Monday, Ms Georgieva called on governments to prepare workers for the changes ahead.
The IMF chief stressed the importance of equipping people with relevant skills, strengthening education systems and ensuring that countries can benefit from AI without leaving vulnerable workers behind.
AI Threatens to Reshape Millions of Jobs
The IMF’s projections highlight the scale of the disruption facing workers across different economies.
According to Ms Georgieva, AI could affect approximately 60 per cent of jobs in advanced economies, compared with 23 per cent in low-income countries.
Although the figures suggest that wealthier economies face greater immediate exposure, the difference largely reflects variations in AI adoption rather than a reduced long-term threat to workers in developing countries.
Advanced economies generally have greater access to digital infrastructure, sophisticated technologies and the financial resources needed to integrate AI into business operations.
These conditions make it easier for companies to automate certain responsibilities, redesign existing positions and reduce their dependence on some categories of human labour.
However, developing economies could face their own challenges as AI becomes more accessible and businesses begin adopting technologies capable of performing tasks previously handled by employees.
The potential consequences extend beyond job losses. Workers may discover that their existing skills have become less valuable, while others could be forced to compete for fewer opportunities in occupations undergoing rapid transformation.
Young Jobseekers Face a Growing Employment Crisis
One of the most troubling aspects of the IMF’s warning concerns young people entering the labour market.
Traditional entry-level positions provide an important starting point for graduates and inexperienced workers seeking to acquire professional skills, gain practical experience and build careers.
However, as companies deploy AI to perform routine administrative duties, process information and support decision-making, some of these opportunities could become less available.
This creates a difficult situation for young jobseekers who need employment to develop the experience required to qualify for more advanced positions.
Without sufficient entry-level opportunities, graduates could find themselves trapped in a cycle where employers demand experience but fewer jobs are available to help them acquire it.
The consequences could be particularly significant in developing economies, where many young people already face difficulties securing stable employment.
Ms Georgieva’s warning suggests that governments must pay closer attention to how AI adoption affects recruitment, workplace training and the transition from education into employment.
Failure to address these challenges could deepen inequalities between workers who possess advanced digital skills and those whose occupations are more vulnerable to automation.
AI Investment Fuels Growth, but Workers Face Unequal Rewards
Despite the risks, the IMF acknowledges that AI is already generating substantial economic activity.
Ms Georgieva noted that spending on data centres and AI model development was stimulating investment and supporting global economic growth of approximately three per cent, even amid disruptions to energy supplies.
The expansion of AI infrastructure is creating demand for workers in areas such as data centre construction and related services.
However, the benefits are not necessarily reaching all workers equally.
An IMF study in the United States found that approximately 10 per cent of jobs already required advanced AI skills, with such positions generally offering higher wages.
At the same time, some routine roles were disappearing as employment expanded in areas such as data centre construction and related services, often at lower pay.
This uneven pattern raises concerns about whether AI will create enough quality employment opportunities to compensate for the jobs it displaces.
While skilled workers may command better wages by using AI to improve their productivity, employees whose responsibilities can be automated could face declining demand for their services.
The challenge for policymakers will be ensuring that the economic gains from AI translate into improved living standards across society rather than concentrating among a relatively small group of workers and businesses.
IMF Calls for Skills Revolution and Policy Reforms
Ms Georgieva has urged governments to respond to the changing employment landscape through stronger education systems, continuous learning and closer monitoring of labour market developments.
She argued that workers must be equipped with the skills required to adapt as technology changes the nature of employment.
This means education systems may need to place greater emphasis on digital literacy, technical competence, critical thinking and the ability to learn new skills throughout a person’s working life.
Developing economies will also need dependable electricity, reliable digital infrastructure and appropriate safeguards to encourage responsible AI adoption.
Without these foundations, countries could struggle to attract investment, develop skilled workers and capture the economic benefits of the technology.
The IMF chief also called for a review of tax systems as AI changes the relationship between labour and capital.
Her concern is that a shift away from labour could weaken public revenues, potentially limiting governments’ ability to finance public services and support workers affected by technological disruption.
As automation changes how businesses generate income, governments may need to reconsider whether existing tax arrangements can sustainably fund essential programmes in an economy increasingly shaped by AI.
IMF Chief Wants AI to Improve Living Standards
Despite her concerns, Ms Georgieva believes AI should ultimately serve humanity by improving productivity and raising living standards.
Her position reflects the central dilemma facing policymakers: how to encourage innovation without allowing technological advancement to undermine employment opportunities and economic security.
The outcome will depend partly on how quickly governments, businesses and educational institutions respond to the changes already unfolding.
Rather than treating AI solely as a threat, countries will need to create conditions that allow workers to use the technology to improve their performance, develop new capabilities and access emerging opportunities.
Ms Georgieva captured this vision with a call for AI to take over undesirable tasks while allowing people to focus on activities they value.
“Get AI to do all the stuff we don’t want to do and let us enjoy the things we love to do.”
Whether that ambition becomes reality will depend on the choices made today. With millions of jobs potentially exposed to technological disruption, governments face mounting pressure to ensure that the AI revolution delivers broader prosperity rather than leaving workers struggling to keep pace.
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