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IMF Chief Warns of AI "Tsunami" Hitting Global Jobs, Urges Skills Investment

IMF Managing Director Kristalina Georgieva has warned that a "tsunami" of artificial intelligence is hitting the global labor market, with jobs being both enhanced and replaced. She revealed that the IMF calculates 40% of jobs worldwide are already impacted by AI, with advanced economies facing a 60% exposure rate. While AI can boost productivity and global growth by up to 0.8%, Georgieva stressed the urgent need to invest in skills to prepare communities, especially where AI adoption is lagging. The discussion at Davos also featured insights from other global leaders on the economic and accessibility challenges of the AI revolution.

Key Points: AI Job "Tsunami" Warning from IMF Chief at Davos

  • 40% of global jobs impacted by AI
  • Advanced economies face 60% exposure
  • AI can boost global growth up to 0.8%
  • Urgent call for skills investment worldwide
2 min read

A tsunami is hitting labour market with AI, we must invest in skills: IMF chief

IMF's Kristalina Georgieva warns AI is reshaping labor markets. 40% of global jobs impacted. Calls for urgent skills investment to prepare communities.

"AI is quickly reshaping economies. Some roles grow; others disappear. We must invest in skills and prepare communities. - Kristalina Georgieva"

Davos, Jan 21

A tsunami is hitting the labour market and jobs are being both enhanced and replaced by artificial intelligence, Kristalina Georgieva, Managing Director, International Monetary Fund, has said.

Speaking at a session during the World Economic Forum (WEF) annual meeting in Davos, she said the world as a whole is already experiencing the arrival of AI, but "I do worry about the accordion of opportunities that are much more present in some places than in others".

"AI is quickly reshaping economies. Some roles grow; others disappear. We must invest in skills and prepare communities," she stressed.

AI is boosting productivity in translation and interpretation and for research analysts, it is enhancement, not replacement. But she worried about communities where AI is not present.

The IMF calculates that on average, 40 per cent of jobs are touched by AI either enhanced or scrapped or changed quite significantly without implications for better pay. In advanced economies, this is 60 per cent, but in low-income countries, 20 to 26 per cent, she said.

"We have a fairly big range of impact on global growth from 0.1 to 0.8 per cent". A 0.8 per cent boost of productivity would make growth higher than pre-pandemic, Georgieva told the gathering.

At the session, Ashwini Vaishnaw, Minister of Electronics and Information Technology, said that creating a large AI model doesn't give you power as a country.

We have to understand the economics of what he calls the 5th Industrial Revolution.

"The economics of this revolution is going to come from ROI. ROI is going to come from deploying the lowest cost solution to get the highest possible return," Vaishnaw said.

The race is on, said Khalid Al-Falih, Minister of Investment, Ministry of Investment of Saudi Arabia.

"Everybody wants to build the infrastructure for it, but the essence of AI's power is it has to be accessible. Diffusion is not just within economies that have to compete, but I believe it has to be done globally," he mentioned.

Technology and AI is a key enabler for Saudi Arabia, said Al-Falih.

- IANS

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Reader Comments

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Priya S
The minister is right. Building a large model isn't the goal. The real power is in applying AI to solve our local problems - in agriculture, healthcare, and logistics. We need affordable solutions that create jobs, not just replace them. The focus must be on deployment and ROI for Indian businesses.
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Rohit P
I work in IT and I'm already seeing this "tsunami". Routine coding and testing jobs are being automated. The IMF chief is spot on - we need to upskill fast. But who will pay for it? Companies expect us to learn on our own time. There needs to be a partnership between industry, govt, and employees.
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Sarah B
The disparity is worrying. 60% impact in advanced economies vs 26% in low-income ones. This could widen the global gap. Accessibility is key, as the Saudi minister said. AI tools need to be affordable and available in local languages for true global diffusion.
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Meera T
While I agree with the need for skills, I respectfully worry this conversation is too elite. What about the millions in manufacturing, retail, and farming? How will AI touch them? We need plans for reskilling *everyone*, not just tech graduates. The "accordion of opportunities" she mentions is very real in our tier-2 and tier-3 cities.
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Karthik V
Productivity boost of 0.8% is huge for a growing economy like ours. But the benefit must be shared. If AI just means more profit for a few companies while workers get lower pay or lose jobs, it's a failure. Policy must ensure inclusive growth. Jai Hind!

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