IMF Chief Warns AI Could Eliminate 40% of Jobs Globally

Artificial intelligence is poised to reshape the global job market, with International Monetary Fund (IMF) Managing Director Kristalina Georgieva warning that approximately 40% of all jobs could eventually be “augmented, downgraded or eliminated” by the technology. Georgieva described AI as a “slow-moving tsunami” that will fundamentally alter how people work and live.

At the IMF’s annual meetings in Bangkok, Georgieva highlighted concerns that the younger generation might bear the brunt of these changes. Entry-level positions, often the first step on a career ladder, are particularly vulnerable. "People to worry about, first and foremost, are young people that are coming into the labor market," she said. "Normally, they would get into these routine, repetitive jobs and then grow up the ranks."

Singapore President Tharman Shanmugaratnam echoed these sentiments, noting a diminishing demand for entry-level jobs upon graduation. This trend could hinder young professionals from gaining initial work experience.

Georgieva also pointed to potential impacts on public finances, as income taxes are a significant source of revenue for governments worldwide. The UK, for instance, faces mounting concern as nearly one million individuals aged 16 to 24 are currently classified as NEETs (not in employment, education, or training).

Concerns about the rising cost of employment in the UK, coupled with new worker rights and legislative changes, have also been cited as factors making businesses more cautious about hiring. Advertising executive Sir Martin Sorrell suggested that AI will increasingly replace labor due to these economic and regulatory pressures.

Research from recruitment site Reed supports these concerns, with 52% of hiring managers reporting that AI is already leading to fewer job opportunities in the UK. Reed’s CEO, James Reed, is advocating for increased taxes on companies that replace human workers with AI or automation, under the slogan “back humans, tax robots.”

“AI is no longer some distant prospect for the world of work,” Reed stated. “Hiring managers are already seeing its impact on recruitment and the kinds of roles businesses need, and jobseekers are feeling the impact.” He emphasized the need to ensure that technological advancements benefit people rather than render a generation redundant, calling for investment in human potential and accessible routes into employment.