The Managing Director of the International Monetary Fund, Kristalina Georgieva, has warned that Artificial Intelligence (AI) could affect about 40 per cent of jobs globally. She made this statement during a panel session at the 2026 IMF/World Bank Annual Meetings in Bangkok, Thailand. Georgieva described AI as a significant threat to the labour market, with the potential to augment, downgrade or eliminate jobs.
According to Georgieva, IMF estimates show that AI could affect about 60 per cent of jobs in advanced economies and 23 per cent in low-income countries. The lower exposure in low-income countries is attributed to the slower spread of AI rather than greater protection from its effects. Georgieva noted that AI is already stimulating investment and demand in some economies through the construction of data centres and the development of AI models.
The United States, China, and India are major AI-producing economies, while several Asian countries, including Thailand, are contributing to the infrastructure supporting the technology. Georgieva stated that these investments are helping sustain global economic growth at about three per cent, despite the drag from energy supply shocks. She, however, noted that the next phase of AI development would be driven by adoption.
Georgieva emphasized that developing economies need reliable electricity, digital infrastructure, appropriate skills, and effective government safeguards to ensure safe, inclusive AI adoption. She cited IMF estimates indicating that AI could increase growth in advanced Asian economies by between 0.5 and one percentage point. Emerging Asian economies could record additional growth of between 0.2 and 0.8 percentage points.
An IMF study in the United States showed that about 10 per cent of jobs already require advanced AI skills, with such positions generally attracting higher pay. Georgieva noted that routine and repetitive jobs are declining, while lower-paying jobs are increasing in areas such as data centre construction and services. Although the study found a positive net employment impact, Georgieva expressed concerns about the trend.
Georgieva identified young people entering the labour market as particularly vulnerable because routine entry-level positions traditionally provide opportunities to gain experience and advance in their careers. She urged governments to monitor labour market developments, reform education systems to promote lifelong learning, and reconsider tax policies as AI changes the balance between labour and capital.
President of Singapore, Tharman Shanmugaratnam, echoed Georgieva's concerns, stating that AI-driven job displacement would occur gradually, giving workers and employers time to adapt. He called on governments to collaborate with the private sector to create employment opportunities for graduates and advocated reforms in tertiary education to reduce excessive emphasis on academic qualifications.
Key points
- AI could affect 40% of global jobs, with 60% in advanced economies and 23% in low-income countries.
- Developing economies need reliable electricity, digital infrastructure, and effective government safeguards for safe AI adoption.
- Governments are urged to reform education systems and reconsider tax policies to adapt to AI-driven changes.
