IMF Chief Warns AI is a 'Slow-Moving Tsunami' Threatening Global Jobs
Kristalina Georgieva states that approximately 40 percent of jobs could be impacted by artificial intelligence, with particular concern for young people entering the workforce.
Artificial intelligence is poised to significantly disrupt the global job market, acting as a "slow-moving tsunami" that could eliminate jobs and diminish opportunities, particularly for younger generations, according to the head of the International Monetary Fund (IMF).
Kristalina Georgieva, speaking at the IMF's annual meetings in Bangkok, indicated that around 40 percent of all jobs may eventually be "augmented, downgraded or eliminated" by the advancing technology. She characterized AI as a transformative force that fundamentally alters how people work and live.
"Love it, hate it, or fear it. It is here, and we are already seeing the first wave of impact," Georgieva stated. She expressed particular concern that the displacement of entry-level positions could disproportionately affect young individuals seeking to begin their careers, robbing them of crucial early opportunities.
Echoing these concerns at the same event, Singapore President Tharman Shanmugaratnam highlighted a growing problem for recent graduates. "There is a particular problem that we have to address very soon and that is that the first rung in employment, your first job upon graduation, is now seeing less demand," he said.
Georgieva also pointed to potential consequences for public finances, noting that a reduction in income-earning jobs could impact tax revenues, a significant source of government funding globally.
In the United Kingdom, concerns about youth employment are already significant, with nearly one million individuals between 16 and 24 classified as NEETs (not in employment, education, or training). Advertising executive Sir Martin Sorrell has suggested that hiring prospects in Britain are being affected by increased employment costs, including national insurance contributions and new worker rights. He indicated that AI's increasing capacity to replace labor could further complicate the job market.
IMF managing director Kristalina Georgieva at the organisation's annual meeting in Bangkok, Thailand