The International Monetary Fund (IMF) Managing Director, Kristalina Georgieva, says Artificial Intelligence (AI) could affect about 40 per cent of jobs globally, urging governments to prepare workers for changes in the labour market.
Georgieva spoke 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.
She described AI as a “slow-moving tsunami” that could transform, downgrade or eliminate jobs, noting that IMF estimates put job exposure at 60 per cent in advanced economies and 23 per cent in low-income countries.
She said the lower exposure in low-income countries reflected slower AI adoption rather than greater protection from its effects.
According to Georgieva, AI-related investments, including data centres and AI models, are supporting global economic growth at about three per cent despite energy supply shocks.
She said developing economies needed reliable electricity, digital infrastructure, relevant skills and effective safeguards to benefit from AI adoption.
The IMF chief cited estimates that AI could raise growth in advanced Asian economies by 0.5 to one percentage point and in emerging Asian economies by 0.2 to 0.8 percentage points.
On employment, she said an IMF study in the United States found that about 10 per cent of jobs already required advanced AI skills, with such positions generally attracting higher pay. However, routine jobs were declining, while some employment growth was concentrated in lower-paying roles.
Georgieva warned that young people entering the labour market were particularly vulnerable as routine entry-level positions declined, limiting opportunities to gain experience and advance their careers.
She urged governments to reform education systems, promote lifelong learning, monitor labour market trends and review tax policies as AI changes the balance between labour and capital.
Singapore’s President, Tharman Shanmugaratnam, said AI-driven job displacement would occur gradually, task by task, giving workers and employers time to adapt through workplace learning and skills development.
He expressed concern about declining demand for entry-level jobs, particularly in technology-related sectors, and urged governments and businesses to create opportunities for graduates.
Shanmugaratnam also called for tertiary education reforms that prioritise practical training, internships and partnerships between universities and businesses, alongside academic qualifications and broader human skills.
