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

IMF Managing Director Kristalina Georgieva warned during the annual IMF and World Bank meetings in Bangkok that artificial intelligence is hitting the global labor market like a "slow-moving tsunami." According to Japan Times, Georgieva noted that the technology is hollowing out demand for human workers by taking over routine, repetitive tasks, while also increasing low-paying jobs in sectors such as construction.

CNBC and CNBC World reported that young workers entering the job market are the most exposed to this shift. Ajel English further noted that the technology may reduce or eliminate up to 40% of jobs worldwide.

Georgieva also highlighted potential disruptions to taxation and public finances, noting that AI could tilt the economy toward capital and away from labor, which is a traditional source of tax income. The Japan Times reported concerns that the technology could widen inequality as gains remain concentrated among a narrow set of workers and economies.

Regarding regional challenges, the World Bank identified that the underrepresentation of African languages, institutions, and economic activities in AI training data could leave millions of Africans behind. The bank's Africa Economic Update reported that an estimated 56 per cent of open-source training data is exclusively in English, creating gaps that may limit the effectiveness of AI models in understanding the diverse linguistic and cultural contexts of the continent.

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