The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has warned that artificial intelligence (AI) could transform or eliminate about 40 per cent of jobs worldwide.
Georgieva spoke on Monday during a panel discussion at the 2026 IMF-World Bank annual meetings in Bangkok, Thailand.
She described AI as a “slow-moving tsunami” for the labour market, noting that its effects were already becoming evident in advanced economies.
“The impact over time on jobs globally we estimate to be around 40 percent jobs either augmented, or downgraded, or eliminated,” she said.
Georgieva said IMF research in the United States showed that approximately 10 per cent of jobs already required AI skills, which were generally associated with higher pay.
She explained that routine and repetitive roles were declining, while employment was growing in areas such as data-centre construction and services.
According to the IMF chief, the overall employment impact within the scope of the US study was positive. However, much of the growth occurred in lower-paying jobs.
She warned that young people were particularly vulnerable because entry-level positions often provide the initial experience needed to build careers and advance professionally.
“Normally, they would get into these routine, repetitive jobs and then grow up the ranks. But if they’re gone, young workers could find it harder to establish themselves in the labour market,” she said.
Georgieva urged governments to monitor changing employment trends, reform education systems and encourage lifelong learning to help workers adapt to evolving labour market demands.
“We cannot today imagine what exactly the world of work will be five years from now, but we can be disciplined and carefully assess what is happening, and then draw lessons. But most importantly, act on them,” she said.
She also cautioned that AI could complicate government revenue collection if economic activity shifted from labour towards capital.
According to her, governments must consider how to generate sufficient revenue to help societies adjust to changes in the workplace.
Georgieva added that AI’s effects would differ across economies. She cited estimates indicating that 60 per cent of jobs in advanced economies were exposed to AI, compared with 40 per cent globally and 26 per cent in low-income countries.
### World Bank chief says ‘small AI’ could boost jobs and productivity
Also speaking at the event, World Bank President Ajay Banga said small-scale AI applications tailored to local needs could improve productivity and create employment opportunities in developing economies.
He explained that such tools could address practical challenges in healthcare, agriculture and other sectors, particularly in communities with limited access to advanced technology and specialist services.
“The opportunity from small AI to build jobs and build productivity is enormous,” he said.
Banga cited a healthcare clinic in Indonesia where a nurse could use a basic mobile phone to photograph a patient’s skin condition and share the image with a doctor or a locally developed AI tool for assessment.
“The technology could help the healthcare worker determine whether the patient needed treatment at the clinic or a referral to a specialist,” he said.
He said the approach could connect local healthcare facilities with specialist expertise that might otherwise be inaccessible.
Banga also highlighted an agricultural platform being developed with Google’s assistance to connect farmers and cooperatives with improved seeds, fertilisers, crop insurance, credit and better prices for their produce.
He explained that the technology could help farmers identify crop diseases using mobile phones and access information to guide their response.
According to Banga, the World Bank’s employment strategy prioritises five sectors: infrastructure, agriculture, primary healthcare, tourism and value-added manufacturing.
He said these sectors could generate jobs suited to local needs without depending exclusively on the traditional model of transferring jobs from advanced economies to developing countries.
“The first is infrastructure; it’s construction, but then what it enables: bridges, roads, airports, digitisation, electricity, water, but also human infrastructure in terms of skilling and education,” he said.
Banga added that developing economies could use AI to support small businesses and entrepreneurs by making technology and access to markets more affordable.
However, he stressed that countries would need reliable electricity, digital infrastructure, relevant skills and policies that encourage investment to benefit from the technology.
He said the objective was to use AI to improve productivity in emerging markets, particularly in sectors capable of creating jobs and expanding access to essential services.