IMF director warns AI could leave young workers without a way up the career ladder

IMF chief Kristalina Georgieva has cautioned that artificial intelligence could leave young workers without opportunities to advance in their careers. While AI investment aids global economic growth, it does not guarantee improved career prospects, especially for younger generations. According to the IMF, AI may impact 40% of jobs worldwide, with 60% in advanced economies.

Georgieva emphasized the need for a reevaluation of taxation and education to address AI's impact on the labor market. AI could potentially eliminate certain jobs while enhancing or downgrading others, leaving young people vulnerable. Traditionally, governments generated revenue through taxation on labor, but as AI alters the job structure, new approaches to taxation and education must be considered.

Georgieva stressed the importance of lifelong learning and acquiring soft skills in the era of AI, as individuals cannot expect to hold onto a single skill for their entire career.