The International Monetary Fund (IMF) has warned that artificial intelligence could affect about 40 per cent of jobs worldwide, urging governments to prepare workers for sweeping changes in the labour market.
IMF Managing Director, Kristalina Georgieva, issued 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.
Describing the technology as a “slow-moving tsunami” for employment, Georgieva said it could transform existing roles, reduce the value of certain jobs or eliminate them entirely.
According to IMF estimates, the technology could affect approximately 60 per cent of jobs in advanced economies, compared with 23 per cent in low-income countries.
She cautioned that the lower exposure in poorer nations reflected slower adoption rather than greater protection from its effects.
Georgieva noted that the technology was already driving investment and economic activity through data centre construction and the development of advanced models.
She identified the United States, China and India as major producers, while several Asian countries, including Thailand, were contributing to the infrastructure needed to support its expansion.
These investments, she said, were helping sustain global economic growth at around three per cent despite the drag from energy supply shocks.
However, she stressed that future gains would depend on how effectively countries adopted the technology, adding that developing economies could benefit by establishing the necessary foundations.
These include reliable electricity, robust digital infrastructure, relevant workforce skills and effective safeguards to ensure safe and inclusive adoption.
Georgieva cited IMF estimates suggesting that the technology 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 extra percentage point of growth could more than offset the economic losses associated with rapidly ageing populations in advanced Asian economies.
Entry-Level Jobs Face Growing Pressure
On employment, Georgieva referenced an IMF study in the United States showing that about 10 per cent of jobs already required advanced AI skills, with such positions generally attracting higher wages.
She said routine and repetitive roles were declining, while employment was increasing in some lower-paying sectors, including data centre construction and related services.
Although the study found a positive net employment impact in the areas examined, she warned that the benefits were unevenly distributed, with much of the employment growth concentrated in lower-paying jobs.
Young people entering the labour market were particularly vulnerable, she said, as the decline in routine entry-level positions could deprive fresh graduates of opportunities to gain experience, develop skills and advance their careers.
The IMF chief urged governments to monitor labour market trends, reform education systems to promote lifelong learning and reconsider tax policies as automation changes the balance between labour and capital.
She warned that greater reliance on capital and reduced dependence on human labour could weaken government revenue, limiting the resources available to support workers and communities affected by technological disruption.
Georgieva nevertheless expressed optimism that the technology could improve living standards by eliminating undesirable tasks, raising productivity and enabling people to participate more 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.
Singapore President Raises Fresh Graduate Concerns
Also speaking during the discussion, Singapore President Tharman Shanmugaratnam said job displacement would occur gradually, task by task, giving workers and employers time to adapt through workplace learning and skills development.
He expressed concern, however, over declining demand for entry-level workers, particularly in technology-related industries, warning of potential consequences for fresh graduates.
Shanmugaratnam urged governments to collaborate with the private sector to create more employment opportunities, stressing that securing a first job was crucial to building experience, professional skills 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.
Education systems, he said, must remain flexible, combining specialised knowledge with broader human skills as employers navigate the uncertain demands of the future workplace.
The warnings underscore growing concerns that while artificial intelligence could boost productivity and economic growth, its benefits may not be shared equally without deliberate efforts to prepare workers and protect opportunities for younger generations.
