Technology
IMF Warns AI Could Disrupt Millions of Jobs as Global Economy Relies on Technology Investment
The rapid expansion of artificial intelligence is helping sustain global economic growth, but its growing influence on workplaces could create signifi...
By Wavers News
IMF Managing Director Kristalina Georgieva speaks at the 2026 IMF and World Bank annual meetings in Bangkok, Thailand, on October 12, 2026.
IMF Managing Director Kristalina Georgieva raised the concerns on Monday, October 12, 2026, during the opening of the annual meetings of the IMF and World Bank in Bangkok, Thailand. She said investment in AI infrastructure was supporting economic activity even as disruptions to energy supplies continued to weigh on the world economy.
The IMF estimates that global economic growth will remain around 3% in 2026, with investment in artificial intelligence providing an important boost. However, the organisation has warned that the technology could reshape employment on a large scale, forcing countries to reconsider how they prepare workers for changing labour market demands.
AI INVESTMENT SUPPORTS GLOBAL GROWTH
According to Georgieva, the surge in investment in AI infrastructure is generating additional economic activity, particularly across Asia, where many companies involved in supplying the technology's hardware are based.
She said advanced Asian economies could receive a growth boost of between 0.5 and one percentage point from the investment boom, while emerging Asian economies could experience an increase of between 0.2 and 0.8 percentage points.
The expansion is taking place as the global economy faces pressure from energy supply disruptions. Investment in data centres, computing infrastructure and related technology has become an important driver of economic activity.
The IMF had forecast global growth of 3% in July and was scheduled to release an updated economic outlook on Tuesday, October 13.
While the investment boom offers opportunities for businesses and technology-producing economies, the IMF's concerns extend beyond economic output to the potential consequences for employment and public finances.
MILLIONS OF WORKERS COULD FACE CHANGES
Georgieva said IMF research indicates that approximately 40% of jobs worldwide could be affected by artificial intelligence through changes in responsibilities, reduced job quality or outright elimination. In advanced economies, the proportion could reach 60%.
The figures cover different forms of workplace disruption and do not mean that every affected position will disappear.
AI can automate certain tasks, assist employees with existing responsibilities or change the skills required to perform a job. These developments could increase productivity in some industries while reducing demand for particular roles in others.
The transition could also place pressure on workers whose skills no longer match employers' requirements.
Georgieva warned that the changes would have implications for economic growth, education and government revenue. If businesses rely more heavily on technology and capital while reducing their dependence on labour, governments may also need to reconsider how their tax systems operate.
The scale of the disruption will depend on how quickly businesses adopt the technology and how effectively workers, employers and policymakers respond.
GRADUATES FACE PRESSURE TO FIND FIRST JOBS
Singapore's President, Tharman Shanmugaratnam, also highlighted concerns about the effect of artificial intelligence on employment opportunities for young people entering the workforce.
He warned that demand for entry-level positions was declining, raising questions about how graduates would gain the experience needed to build their careers.
Entry-level jobs often provide workers with their first opportunity to develop professional skills, learn from experienced colleagues and progress into more senior positions. If businesses reduce these opportunities as they automate routine tasks, young people could face greater difficulty establishing themselves professionally.
Shanmugaratnam also cautioned that the benefits of AI could be distributed unevenly between advanced and developing economies.
Countries with substantial technological infrastructure and investment could be better positioned to benefit from the transition, while others risk falling behind if they lack the resources and policies needed to adopt the technology effectively.
He urged governments to ensure that AI supports the creation of productive jobs and allows workers to continue progressing in their careers.
WORLD BANK EMPHASISES PRACTICAL AI APPLICATIONS
World Bank President Ajay Banga offered a different perspective on the possible effects of AI on entry-level employment, saying he was not convinced that the technology would necessarily eliminate those jobs.
He pointed to opportunities for developing countries to use smaller, more accessible AI systems to improve productivity without requiring the enormous computing resources needed to build the largest models.
Potential applications include helping farmers improve their work, supporting health clinics and assisting teachers.
Such uses could allow developing economies to benefit from AI without having to compete directly with wealthier countries in every area of advanced technology development.
The difference in emphasis highlights an important question facing policymakers: whether AI adoption will primarily replace existing work or create new opportunities by helping people and organisations perform tasks more effectively.
GLOBAL POLICYMAKERS FACE GROWING CHALLENGES
The discussions took place during the annual IMF and World Bank meetings, which brought together finance officials and other participants from around the world to consider economic challenges and policy priorities.
Approximately 18,000 people were expected to attend the week's gathering in Bangkok.
As governments assess the economic implications of artificial intelligence, the challenge will be to encourage innovation while preparing workers for changes in employment requirements.
Investment in technology may strengthen productivity and support economic growth, but the benefits will not necessarily reach every worker or country equally.
Education, workforce training and policies that help people adapt to changing job requirements are likely to play important roles in determining how economies manage the transition.
The IMF's warning underscores the need for governments to consider both sides of the AI expansion: its contribution to economic activity and the risks it poses to employment, career development and public revenue.