IMF Forecasts AI Will Affect 40% Of Jobs Globally

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The International Monetary Fund (IMF), has projected that artificial intelligence (AI) could affect about 40 per cent of jobs globally and urged national governments to prepare workers for emerging techno-powered changes in the global labour market.

The Managing Director of the Fund, Kristalina Georgieva, made this projection in her contribution during a panel session titled “Small Scale AI: More and Better Jobs” at the ongoing 2026 IMF/World Bank Annual Meetings in Bangkok, Thailand.

She described AI as a slow-moving tsunami in the global labour market, which could transform jobs, downgrade some roles or eliminate others.

The finance expert disclosed that IMF estimated that AI could affect about 60 per cent of jobs in advanced economies, compared with 23 per cent in low-income countries, adding that the lower exposure in poorer countries reflects slower AI adoption rather than greater protection from its effects.

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According to her, AI is already stimulating investment and economic activity through the construction of data centres and the development of AI models, with the United States, China and India emerging as major producers of the technology.

While noting that investments in AI infrastructure are helping sustain global economic growth at about three per cent despite disruptions caused by energy supply shocks, Georgieva predicted, however, that future benefits would depend largely on how effectively countries adopted the technology, stressing the need for reliable electricity, digital infrastructure, appropriate skills and effective government safeguards.

She cited estimates, which showed that AI could increase growth in advanced Asian economies by between 0.5 and one percentage point, compared to between 0.2 and 0.8 percentage points in emerging Asian economies.

Speaking on AI potential impact on employment, Georgieva said an IMF study in the United States found that about 10 per cent of jobs already required advanced AI skills, with such positions generally attracting higher wages, adding that routine and repetitive jobs are declining, while employment is increasing in lower-paying areas, including data centre construction and related services.

The IMF boss further pointed out that although the Fund’s study found a positive net employment impact in the areas examined, but expressed concern that much of the employment growth was concentrated in lower-paying jobs.

Identifying young people entering the labour market as particularly vulnerable group to the AI gradual take-over of jobs in the labour market, Georgieva warned that the graduall drop in  routine entry-level positions could limit opportunities for graduates and other young workers to gain experience and advance their careers.

She urged national governments on the need to monitor labour market trends, reform education systems to promote lifelong learning and review tax policies as AI continues to change the balance between labour and capital.

The finance expert maintained that greater reliance on capital and reduced dependence on human labour could affect government revenue and limit public resources available to support workers through the transition, expressing optimism that AI would take over undesirable tasks, allowing people to benefit from higher productivity, improved living standards and meaningful social participation.

While advocating a future that combines productivity gains with human dignity, Georgieva stressed: “Get AI to do all the stuff we don’t want to do, and let us enjoy the things we love to do.”

The IMF is expected to release its World Economic Outlook and Global Financial Stability Report during the ongoing IMF/World Bank meetings.

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