IMF chief warns of AI tsunami as entry-level jobs face disruption

INTERNATIONAL MONETARY Fund Managing Director Kristalina Georgieva warned at the IMF-World Bank Group Annual Meetings 2026 in Bangkok that artificial intelligence is a "slow-moving tsunami" set to reshape labor markets globally. She emphasized that young people and those entering the workforce are particularly vulnerable to changes in entry-level employment due to AI's impact on job demands.

Studies indicate that 60% of jobs in high-income countries, compared to 23% in low-income countries, could be affected by AI. This disparity arises from lower access and adoption of the technology in poorer nations. Georgieva described AI development as occurring in two waves. The first wave involves heavy investments in data centers and AI models, with major developers including the United States, China, and India, while Asian countries like Thailand contribute to infrastructure development.

The second wave will entail widespread AI application across economic sectors and daily life, similar to the widespread adoption of mobile phones. Georgieva highlighted four key foundations for developing countries to benefit from AI: reliable electricity, effective digital infrastructure, workers' skills, and regulations managing technological risks.

The IMF estimates AI could boost economic growth by 0.5 to 1 percentage point in advanced Asian economies, potentially offsetting the economic effects of aging populations. Emerging Asian economies may gain an additional 0.2 to 0.8 percentage points of growth. Thai explosive ordnance disposal personnel prepared for AI-related applications at the Queen Sirikit National Convention Center during the meetings.

Georgieva cited US research indicating that 10% of jobs have already begun requiring AI-related skills, primarily in highly skilled, well-paid occupations. Routine, repetitive jobs are expected to decline, while lower-paid employment expands in construction and data centers, as well as services. She outlined three priorities for governments: updating labor policies to help workers transition to growing occupations, reforming education and promoting lifelong learning for continual skill development, and reviewing fiscal systems to maintain revenues amidst employment pattern changes.

World Bank Group President Ajay Banga stressed the urgency of job creation, noting that 1.2 billion young people will turn 18 over the next 15 years. He emphasized that employment offers more than income, providing opportunities for productive societal participation, hope, and dignity.