Without aggressive investment in skills, infrastructure and inclusive growth, the artificial intelligence (AI) wave could trigger a global labour market shock that will leave millions behind, the International Monetary Fund (IMF) Managing Director, Kristalina Georgieva, has warned.
Speaking at the World Economic Forum in Davos, Georgieva described the impact of AI on jobs, especially entry-level positions, as a “tsunami”, which even the most advanced economies are not fully prepared to handle.
“Even in the best prepared countries, I do not think we are prepared enough,” Georgieva said, warning that AI is rapidly reshaping labour markets.
She said the IMF research shows that about 40 per cent of jobs globally are already being affected, some positively, others at risk of displacement.
Noting that the wave is sweeping so quickly, the IMF said it was threatening to upset millions of jobs as AI and technology investment reshape economies faster than workers can adapt.
The global Fund body said that while global growth appears stable on the surface, the apparent resilience was masking deep vulnerabilities, especially in employment.
The IMF noted that the tech-driven boom comes with risks. Investment and market optimism are becoming heavily concentrated in the technology sector, raising concerns about overvaluation, rising debt, and what could happen if financial conditions tighten or returns disappoint.
The Guardian
