IMF Warns AI Could Affect 40% of Global Jobs, Urges Governments to Prepare Workers

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has warned that Artificial Intelligence (AI) could affect about 40 percent of jobs worldwide, urging governments to equip workers with the skills needed to adapt to changes in the labour market.

Georgieva made the remarks on Monday during a panel discussion titled “Small Scale AI: More and Better Jobs” at the 2026 IMF/World Bank Annual Meetings in Bangkok, Thailand.

She described AI as a “slow-moving tsunami” for the global labour market, warning that the technology could enhance, reduce, or eliminate certain jobs.

According to Georgieva, IMF estimates indicate that AI could affect approximately 60 per cent of jobs in advanced economies and 23 per cent in low-income countries.

She explained that the lower exposure in developing economies reflected the slower adoption of AI rather than greater protection from its potential effects.

The IMF chief noted that AI was already stimulating investment and economic activity in several countries, particularly through the construction of data centres and the development of advanced AI models.

She identified the United States, China, and India as major producers of AI technology, while several Asian economies, including Thailand, were contributing to the infrastructure supporting its development.

Georgieva said these investments were helping to sustain global economic growth at around three per cent, despite challenges arising from energy supply disruptions.

She explained that the next phase of AI development would depend largely on adoption, providing opportunities for more countries to benefit from the technology if they established the necessary foundations.

According to her, developing economies must prioritise reliable electricity, digital infrastructure, relevant skills, and effective regulatory safeguards to ensure that AI adoption is safe and inclusive.

Citing IMF estimates, Georgieva said AI could boost economic growth in advanced Asian economies by between 0.5 and one percentage point, while emerging Asian economies could experience additional growth of between 0.2 and 0.8 percentage points.

She added that an additional percentage point of economic growth could more than compensate for the economic losses associated with rapidly ageing populations in advanced Asian economies.

Speaking on employment trends, Georgieva disclosed that an IMF study conducted in the United States found that approximately 10 percent of jobs already required advanced AI skills, with such positions generally offering higher salaries.

However, she observed that routine and repetitive jobs were declining, while employment opportunities were increasing in relatively lower-paying sectors, including data centre construction and related services.

Although the study recorded a positive net employment impact in the areas examined, Georgieva expressed concern that much of the job growth was concentrated in lower-paying occupations.

She identified young people entering the workforce as particularly vulnerable, noting that routine entry-level positions had traditionally provided opportunities for graduates to gain practical experience and progress in their careers.

Georgieva urged governments to closely monitor labour market developments, reform education systems to encourage lifelong learning, and review taxation policies as AI increasingly changes the relationship between labour and capital.

She warned that greater dependence on capital and reduced reliance on human labour could affect government revenue, potentially limiting the resources available to support workers and communities through the transition.

Despite these concerns, Georgieva expressed optimism that AI could improve productivity and living standards by taking over undesirable tasks and allowing people to focus on more meaningful activities.

“Get AI to do all the stuff we don’t want to do and let us enjoy the things we love to do,” she said.

Also speaking during the discussion, Singapore’s President, Tharman Shanmugaratnam, said AI-related job displacement was likely to occur gradually, with individual tasks being automated over time.

He explained that this gradual transition could provide workers and employers with opportunities to adapt through workplace training, continuous learning, and skills development.

However, Shanmugaratnam expressed concern over declining demand for entry-level positions, particularly in technology-related industries, warning that the trend could adversely affect fresh graduates seeking their first employment opportunities.

He called on governments to work closely with the private sector to create employment opportunities for young graduates, stressing that securing a first job was essential for developing professional skills, gaining experience, and building confidence.

The Singaporean president also advocated reforms in tertiary education, urging institutions to reduce excessive emphasis on academic qualifications and strengthen practical training.

He recommended expanding internships, workplace attachments, and partnerships between universities and businesses to ensure that graduates were better prepared for changing employment demands.

Shanmugaratnam emphasised that education systems must remain flexible and responsive to technological developments.

He said future education and training programmes should combine specialised technical knowledge with broader human skills, particularly as the precise requirements of the evolving labour market remained uncertain.