Kristalina Georgieva cautions that young workers face growing risks as artificial intelligence reshapes employment, while the World Bank urges developing economies to use locally adapted AI tools to drive productivity and create jobs…….
The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has warned that artificial intelligence (AI) could transform, downgrade or eliminate about 40 per cent of jobs worldwide, raising concerns about the future of employment and the readiness of workers to adapt.
Georgieva gave the warning on Monday during a panel discussion at the 2026 IMF-World Bank annual meetings in Bangkok, Thailand, where she described AI as a “slow-moving tsunami” sweeping through the labour market.
According to her, the effects of the technology are already becoming evident, particularly in advanced economies, as employers increasingly adopt AI-driven systems and workplace requirements continue to change.
“The impact over time on jobs globally we estimate to be around 40 percent jobs either augmented, or downgraded, or eliminated,” she said.
The IMF chief cited research conducted in the United States indicating that approximately 10 per cent of jobs already require AI-related skills, with such positions generally attracting higher salaries.
She explained that while routine and repetitive roles are gradually declining, employment opportunities are emerging in other areas, including data-centre construction and related services.
Although the net employment effect in the US study area was positive, Georgieva noted that much of the job growth was concentrated in lower-paying positions, highlighting concerns about the quality of employment created by technological change.
Georgieva identified young people as particularly vulnerable to AI-driven changes, warning that the disappearance of entry-level positions could make it harder for them to enter the workforce and build sustainable careers.
She explained that routine jobs have traditionally provided young workers with opportunities to gain experience, develop professional skills and advance to higher positions.
“Normally, they would get into these routine, repetitive jobs and then grow up the ranks. But if they’re gone, young workers could find it harder to establish themselves in the labour market,” she said.
To address the challenge, the IMF managing director urged governments to closely monitor employment trends, overhaul education systems where necessary and expand opportunities for lifelong learning.
She said policymakers must remain alert to emerging changes and take timely action rather than attempt to predict every aspect of how work will evolve.
“We cannot today imagine what exactly the world of work will be five years from now, but we can be disciplined and carefully assess what is happening, and then draw lessons. But most importantly, act on them,” she said.
Beyond employment, Georgieva warned that the growing use of AI could create challenges for public finances if economic activity increasingly shifts from labour towards capital.
She said governments would need to reconsider how they generate sufficient revenue to finance public services and support societies adjusting to changes in the labour market.
The extent of AI’s impact, she added, would differ across economies depending on their level of development.
IMF estimates indicate that 60 per cent of jobs in advanced economies are exposed to AI, compared with 40 per cent globally and 26 per cent in low-income countries.
World Bank Advocates Locally Adapted AI To Create Jobs
Meanwhile, World Bank President Ajay Banga has called attention to the potential of smaller, locally adapted AI applications to improve productivity and expand employment opportunities in developing economies.
Speaking at the same event, Banga said practical AI tools could help address challenges in healthcare, agriculture and other essential sectors, particularly in communities where access to specialists and advanced technology remains limited.
“The opportunity from small AI to build jobs and build productivity is enormous,” he said.
Banga illustrated the potential of the technology with an example involving a healthcare clinic in Indonesia, where a nurse could use a basic mobile phone to photograph a patient’s skin condition and share the image with a doctor or a locally developed AI tool for assessment.
The technology could help the healthcare worker determine whether the patient could be treated at the clinic or needed referral to a specialist, improving access to medical guidance in underserved areas.
He said such applications could connect local healthcare facilities with expertise that might otherwise be difficult to obtain.
In agriculture, Banga highlighted a platform being developed with Google’s assistance to connect farmers and cooperatives with improved seeds, fertilisers, crop insurance, credit facilities and better markets for their produce.
The platform could also enable farmers to identify crop diseases using their mobile phones and access information to guide their response.
According to Banga, these applications demonstrate how AI can be deployed to solve practical problems while supporting economic activity and employment at the community level.
World Bank Identifies Five Sectors For Job Creation
Banga said the World Bank’s employment strategy prioritises five sectors with significant potential to generate jobs: infrastructure, agriculture, primary healthcare, tourism and value-added manufacturing.
He argued that investing in these areas could create employment opportunities suited to local economies, rather than relying exclusively on the traditional approach of transferring jobs from advanced economies to developing countries.
“The first is infrastructure; it’s construction, but then what it enables: bridges, roads, airports, digitisation, electricity, water, but also human infrastructure in terms of skilling and education,” he said.
He added that AI could help small businesses and entrepreneurs improve efficiency by reducing barriers to technology and expanding access to markets.
However, Banga stressed that developing economies must establish the right conditions to benefit from the technology, including reliable electricity, stronger digital infrastructure, relevant workforce skills and policies that encourage investment.
He said the objective was to deploy AI as a productivity tool in emerging markets, particularly in sectors capable of generating employment and improving access to essential services.
The remarks from both institutions highlight the challenge facing governments as AI adoption accelerates: managing the risks of job displacement while ensuring that technological advances translate into broader economic opportunities.
