Kristalina Georgieva warns AI could impact 40% of global jobs

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has issued a warning that artificial intelligence (AI) is set to reshape the global labour market, potentially affecting 40% of jobs worldwide. Speaking during a panel at the 2026 IMF/World Bank Annual Meetings in Bangkok, she described the impending technological shift as a "slow-moving tsunami" that demands immediate policy intervention. The impact, however, is expected to be unevenly distributed, with advanced economies facing significantly higher levels of disruption than developing nations.

Georgieva highlighted that while approximately 60% of roles in advanced economies could be influenced by AI, only about 23% of jobs in low-income countries are currently expected to see similar effects. This disparity arises because advanced economies have a higher concentration of cognitive-task-oriented roles that AI can either enhance or replace. While some routine positions are already disappearing, Georgieva noted that new employment opportunities are emerging in sectors like data centre management, though she cautioned that these new roles often come with lower pay than the positions they replace.

For developing and low-income countries to benefit from the technology rather than being left behind, the IMF chief emphasized the urgent need for foundational investments. She called on governments to prioritise dependable electricity and robust digital infrastructure. Without these essentials, the digital divide could widen, preventing these nations from harnessing AI to boost productivity. Georgieva stressed that the transition requires more than just hardware; it necessitates a fundamental shift in how the workforce is trained and supported.

Addressing the risks to the next generation, Georgieva urged for comprehensive education reforms to support continuous learning. She specifically pointed out the challenges facing young job seekers entering a market where entry-level roles are increasingly automated. To manage the transition effectively, she recommended that governments monitor employment trends closely and implement social safety nets where necessary. Despite the risks of job displacement and wage pressure, Georgieva maintained that if managed correctly, AI could ultimately enhance global living standards and productivity.