IMF warns AI could disrupt 40% of jobs worldwide

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has warned that Artificial Intelligence (AI) could reshape about 40 per cent of jobs worldwide, calling on governments to equip workers with the skills needed to navigate the changing employment landscape.

Speaking at a panel discussion on “Small Scale AI: More and Better Jobs” at the 2026 IMF/World Bank Annual Meetings in Bangkok, Thailand, on Monday, Ms Georgieva likened the technology’s impact on employment to a “slow-moving tsunami”, with the potential to transform roles, reduce their value or make some jobs redundant.

She said IMF projections suggest AI could affect 60 per cent of jobs in advanced economies, compared with 23 per cent in low-income countries. The difference, she explained, reflects variations in AI adoption, rather than a reduced risk to workers in poorer economies.

Ms Georgieva noted that spending on data centres and AI model development was already stimulating investment and supporting global growth at about three per cent, despite disruptions to energy supplies.

She said, however, that broader adoption would determine whether more countries could capture the technology’s economic benefits.

She stressed that developing economies would need dependable electricity, digital infrastructure, relevant workforce skills and strong safeguards to support responsible AI use.

On the labour market, she cited an IMF study in the United States showing that approximately 10 per cent of jobs already required advanced AI skills, with such positions generally offering higher wages.

Meanwhile, some routine roles were disappearing as employment expanded in areas such as data centre construction and related services, often at lower pay.

She warned that young jobseekers faced particular risks as traditional entry-level positions, which help workers gain experience and progress professionally, came under pressure.

The IMF chief called for closer monitoring of employment trends, education reforms that promote continuous learning and a review of tax systems as AI changes the relationship between labour and capital.

She cautioned that a shift away from labour could weaken public revenues and limit governments’ capacity to support affected workers.

Despite these concerns, she said AI should ultimately improve productivity and living standards.

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