IMF: artificial intelligence will affect 40 percent of jobs

IMF: Artificial Intelligence Will Affect 40 Percent of Jobs

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), stated that large investments directed into artificial intelligence infrastructure are supporting the growth of the global economy. At the same time, the rapid spread of the technology could cause major changes in the labor market, the tax system, and education.

The annual meetings of the IMF and the World Bank began in Bangkok on October 12. Describing artificial intelligence as a "slow-moving tsunami," Georgieva stated that according to IMF research, nearly 40 percent of jobs worldwide will be affected by this technology. In advanced economies, this figure could reach up to 60 percent.

In July, the IMF projected global economic growth at 3 percent for 2026. According to Georgieva, despite shocks in energy supply, investments in artificial intelligence are supporting economic growth. The Fund is expected to release its updated economic forecast on October 13.

Georgieva stated that investments in artificial intelligence could boost growth in advanced Asian economies by 0.5–1 percentage point, and in developing Asian countries by 0.2–0.8 percentage point.

According to her, artificial intelligence is already affecting the economy through demand and investment shocks. The US, China, and India are key players in the artificial intelligence supply chain. Many companies that supply equipment needed for infrastructure are located in Asia.

Georgieva noted that the impact of technology on the labor market will also affect employment, economic growth, education, and government tax revenues. In this process, income could shift from labor to capital.

President of Singapore Tharman Shanmugaratnam warned that demand for entry-level jobs for university-educated youth is declining due to artificial intelligence. In his view, a slow response to the technology could further widen the gap between developed and developing countries in terms of economic growth and job creation.

World Bank President Ajay Banga said he is not convinced that artificial intelligence will inevitably eliminate entry-level jobs. In his opinion, changes might be stronger in advanced economies developing large artificial intelligence models.

According to Ajay Banga, the World Bank is focusing on "small AI" solutions that do not require massive computing power. These could serve to increase the productivity of farmers, medical institutions, and teachers.