Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), has issued a stark warning that artificial intelligence (AI) is acting like a "tsunami" on the global labor market, with 40% of jobs worldwide expected to be affected in the coming years.
Speaking at a World Economic Forum panel in Davos on January 23, Georgieva outlined the IMF's research, noting the impact will be more acute in advanced economies, where up to 60% of jobs could be transformed, enhanced, or eliminated.
"Massive transformation of demand for skills" is the first major observation, Georgieva stated. She emphasized that while some jobs are enhanced—with one in ten already seeing higher pay in advanced economies—the disruption poses serious challenges.
The IMF chief highlighted two critical problems: the elimination of tasks typically found in entry-level jobs, making it harder for young people to enter the workforce, and downward pressure on wages for middle-class roles not directly replaced by AI.
Georgieva expressed concern that AI is advancing faster than society's ability to manage it safely and inclusively, questioning whether sufficient "guardrails" are in place.
Separately, Georgieva cautioned against complacency regarding the global economic outlook. Despite the IMF's upgraded growth projection to 3.3% for 2026, she stressed that growth remains insufficient, especially with high global debt levels nearing 100% of GDP in many nations.
"Debt that is hanging on our neck... is going to be a very heavy burden," she said, urging countries to focus more on sustainable and inclusive economic growth.
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