The global investment boom in artificial intelligence is helping sustain economic growth at around 3%, but the technology could trigger major changes in employment, education and government tax revenues, International Monetary Fund Managing Director Kristalina Georgieva warned on Monday.
Speaking at the opening of the IMF and World Bank annual meetings in Bangkok, Georgieva described AI as a “slow-moving tsunami” that could reshape labour markets as businesses adopt the technology and economies adjust to its effects.
She said IMF research indicated that around 40% of jobs worldwide could be augmented, downgraded or eliminated by AI. The proportion could reach 60% in advanced economies, where businesses are more exposed to the technology.
“AI, love it, hate it. It’s already here,” Georgieva said.
She added that the surge in AI investment was generating a demand and investment shock that could increase growth in advanced Asian economies by between 0.5 and one percentage point. Emerging Asian economies could see gains of between 0.2 and 0.8 percentage points.
The investment boom is helping the global economy maintain growth of around 3% despite the drag from an energy supply shock, she said. The IMF forecast global growth of 3% for 2026 in July and was scheduled to publish an updated outlook on Tuesday.
Georgieva warned that the shift towards AI could have far-reaching consequences for governments as economic activity moves from labour towards capital, potentially changing how countries collect taxes.
An initial study cited by the IMF chief found that 10% of jobs in the United States already required AI skills. While demand for routine and repetitive work was declining, employment was increasing in lower-paying sectors such as construction and data centres.
She described AI as a transformative technology that was changing how people work and live.
Singapore President Tharman Shanmugaratnam, who also spoke at the event, warned that the technology was reducing demand for entry-level positions traditionally available to university graduates.
He urged governments to act quickly to protect opportunities for young workers and prevent AI from widening the economic gap between advanced and developing countries.
“AI is going to widen the divergence if we are too passive about it,” he said, calling for efforts to use the technology to create good jobs and help workers progress in their careers.
World Bank President Ajay Banga offered a more cautious assessment of the threat to entry-level employment. He said he was not convinced that AI would destroy such jobs across the board, arguing that much of the disruption would initially occur in advanced economies developing large AI models.
In emerging markets, the World Bank is focusing on smaller AI systems that require less computing power and can improve productivity for farmers, health clinics and teachers.
Around 18,000 people are expected to attend the weeklong meetings, including finance officials from the IMF’s 191 member countries. Several ministers are expected to miss the gathering because of domestic priorities or other challenges.
Saudi Finance Minister Mohammed al-Jadaan, who chairs the IMF’s steering committee, was still expected to attend despite the suspension of operations at Riyadh airport following deadly weekend attacks by Yemen’s Iran-aligned Houthis, according to two sources.
