IMF Warns AI Could Affect 40% of Jobs Globally, 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 per cent of jobs worldwide, urging governments to prepare workers for changes in the labour market.

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

She described AI as a “slow-moving tsunami” that could transform the workplace by enhancing some jobs, reducing the demand for others and eliminating certain roles entirely.

According to her, IMF estimates indicate that AI could affect about 60 per cent of jobs in advanced economies, compared with 23 per cent in low-income countries.

She explained that the lower exposure in low-income countries reflected the slower adoption of AI rather than greater protection against its potential effects.

Georgieva said AI was already stimulating investment and economic activity in some countries through the construction of data centres and the development of AI models.

She identified the United States, China and India as major AI-producing economies, while several Asian countries, including Thailand, were contributing to the infrastructure supporting the technology.

The IMF chief said these investments were helping sustain global economic growth at around three per cent despite the negative effects of energy supply shocks.

However, she stressed that the next phase of AI development would depend largely on how effectively countries adopted the technology and established the necessary foundations to benefit from it.

She said developing economies needed reliable electricity, digital infrastructure, relevant skills and effective government safeguards to ensure that AI adoption was safe and inclusive.

Georgieva cited IMF estimates suggesting that AI could raise growth in advanced Asian economies by between 0.5 and one percentage point, while emerging Asian economies could record additional growth of between 0.2 and 0.8 percentage points.

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

On employment, Georgieva said an IMF study in the United States found that about 10 per cent of jobs already required advanced AI skills, with such positions generally offering higher pay.

She noted that routine and repetitive jobs were declining, while employment was increasing in areas such as data centre construction and related services, although many of these new jobs offered lower wages.

While the study found a positive net employment impact in the sectors examined, she expressed concern that much of the employment growth was concentrated in lower-paying jobs.

The IMF managing director identified young people entering the labour market as particularly vulnerable, warning that the decline in routine entry-level positions could limit opportunities for fresh graduates to gain experience and advance their careers.

She urged governments to monitor labour market trends, reform education systems to promote lifelong learning and review tax policies as AI changes the balance between labour and capital.

According to her, increased reliance on capital at the expense of human labour could weaken government revenue and reduce the resources available to support workers affected by technological changes.

Georgieva expressed hope that AI would take over undesirable tasks, allowing people to become more productive, enjoy improved living standards and participate meaningfully in society.

“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 at the session, Singaporean President Tharman Shanmugaratnam said AI-driven job displacement would occur gradually, task by task, giving workers and employers time to adapt through workplace learning and skills development.

However, he expressed concern over declining demand for entry-level jobs, particularly in technology-related sectors, warning that the trend could create difficulties for fresh graduates.

Shanmugaratnam called on governments to work with the private sector to create more employment opportunities for graduates, stressing that securing a first job was essential for developing skills, experience and confidence.

He also advocated reforms in tertiary education to reduce excessive emphasis on academic qualifications and expand practical training, internships, workplace attachments and partnerships between universities and businesses.

The Singaporean president said education systems must remain flexible by combining specialised knowledge with broader human skills, given the uncertainty surrounding the future demands of the workplace.

Both leaders emphasised the need for governments, businesses and educational institutions to prepare workers for AI-driven changes while ensuring that the benefits of technological advancement are shared more widely.