World Bank jobs council urges 'crisis-era' support measures as IMF warns of AI ‘tsunami’ hit

IMF Managing Director Kristalina Georgieva warned during the IMF and World Bank annual meetings in Bangkok that artificial intelligence is hitting the global labor market like a "slow-moving tsunami." Speaking at a session regarding AI's impact on employment, Georgieva stated the technology is hollowing out demand for human workers by taking over routine tasks. Ajel English reports that Georgieva says AI may reduce or eliminate up to 40% of jobs worldwide.

According to the Japan Times, Georgieva noted that young workers entering the job market are particularly exposed, with those in AI-exposed fields already seeing a slowdown in hiring. She also warned that AI could strain public finances by shifting the economy toward capital and away from labor, which is a traditional source of tax income. There are additional concerns that the technology may increase inequality as gains remain concentrated among a narrow set of workers and economies.

The World Bank has identified that global training datasets substantially underrepresent African languages, institutions, and economic activities, which could prevent AI systems from responding effectively to the continent's needs. In its Africa Economic Update: Building AI Readiness, the bank notes that an estimated 56 per cent of open-source training data is exclusively in English.

Brief written by urgent.news from CNBC, CNBC World, Japan Times, Ajel English, People Daily Kenya — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.