The warnings about AI impacting jobs aren’t only coming from the tech world — international economic institutions are also sounding the alarm.
Speaking at the World Economic Forum in Davos, International Monetary Fund Managing Director Kristalina Georgieva delivered a stark assessment of artificial intelligence’s impact on the global workforce, describing it as a force that will reshape employment on an unprecedented scale.
A Wave of Disruption Across All Economies
Georgieva projected that AI will affect a staggering proportion of jobs worldwide in the coming years. In advanced economies, she anticipates 60% of positions will be impacted by the technology, whether enhanced, transformed, or eliminated entirely. Globally, the figure stands at 40% of all jobs facing significant AI-driven change.
Drawing a vivid comparison, she characterized this shift as “like a tsunami hitting the labour market” – a metaphor that underscores both the scale and speed of the transformation ahead.
Early Signs of Change Already Visible
The changes aren’t merely theoretical or distant. According to Georgieva, one in 10 jobs in advanced economies has already been enhanced by AI, with workers in these roles typically seeing increased productivity and higher wages. This productivity boost creates positive ripple effects throughout local economies, suggesting that AI integration can deliver tangible benefits when it augments human capabilities.
Young Workers and the Middle Class Face Greatest Risk
However, Georgieva’s assessment wasn’t uniformly optimistic. She highlighted two groups particularly vulnerable to AI’s disruptive potential.
Young people entering the workforce face mounting challenges as AI eliminates many entry-level positions. Tasks typically assigned to junior employees are precisely those most susceptible to automation, making it increasingly difficult for young workers to secure their first meaningful job placements and gain the experience needed to advance their careers.
The middle class also stands at a critical juncture. Workers whose roles aren’t directly transformed by AI may find themselves squeezed economically. Without the productivity gains that AI-enhanced jobs deliver, these workers could see stagnant or declining wages as they compete in an increasingly polarized labor market.
Georgieva’s conclusion was direct: “So the middle class, inevitably, is going to be affected.”
The Regulation Gap
Perhaps most concerning to the IMF chief is the disconnect between AI’s rapid advancement and the regulatory frameworks meant to govern it. She identified insufficient regulation as her greatest fear regarding artificial intelligence.
The technology is evolving at breakneck speed, yet fundamental questions about safety and inclusivity remain unresolved. Georgieva issued a call to action for policymakers and business leaders alike: “Wake up, AI is for real, and it is transforming our world faster than we are getting ahead of it.”
Her message emphasizes that while AI development charges forward, the systems to ensure it develops safely and benefits society broadly are lagging dangerously behind. The implication is clear: without urgent action to establish appropriate guardrails, the labour market tsunami she describes could cause far more disruption than necessary, with the most vulnerable workers bearing the brunt of the impact.