Artificial Intelligence is no longer a futuristic concept — it is already transforming workplaces across the globe. In an interview,Kristalina Georgieva, Managing Director of theInternational Monetary Fund (IMF), described AI’s impact on jobs as “like a tsunami” — powerful, fast and impossible to ignore.
Georgieva stressed that the pace of AI-driven change is unlike any previous technological revolution. “AI is already here,” she said, warning that countries that fail to act decisively risk falling behind.
AI offers enormous promise — boosting productivity, raising incomes and accelerating economic growth. But it also carries serious risks, particularly for workers whose roles may be transformed or displaced.
According to IMF estimates, around40% of jobs worldwidecould be affected by AI in the coming years. In advanced economies, that figure could climb to60%.
However, “affected” does not necessarily mean replaced. Some roles will become more efficient and better paid, while others may disappear or fundamentally change.
In the United States, one in ten jobs already requires AI-related skills — and those positions tend to offer higher wages. Increased earnings in high-skilled roles are boosting spending in low-skilled service sectors such as hospitality and entertainment. Yet many of the newly created jobs are lower-paying, contributing to a more divided labour market.
Georgieva highlighted growing pressure on middle-income roles. High-skilled workers are benefiting from AI-driven wage gains, while low-skilled workers are finding employment, often at modest pay levels. But mid-level jobs — neither highly specialised nor service-based — are shrinking.
Automation is also reducing entry-level opportunities, increasing anxiety among young graduates struggling to find a foothold in the workforce.
Despite these challenges, Georgieva emphasised that governments are not powerless.
Her first recommendation: reform education systems. Workers must develop adaptability and lifelong learning skills. In an AI-driven economy, the ability to “learn to learn” will be critical.
Second, countries must strengthen social safety nets to support workers temporarily displaced by automation. She cited Denmark’s “flexicurity” model, which combines labour market flexibility with strong worker protections, as a possible template. She also welcomed India’s labour reforms, noting that flexibility should always be balanced with security.
For the IMF, ensuring that AI-driven growth benefits society broadly — rather than concentrating gains among a few — is now a central priority.
Georgieva’s message was clear: AI can boost growth and lift incomes, but without early action and thoughtful policies, it can also deepen inequality and social tension.
The challenge for governments worldwide is to act early, remain flexible and ensure that the benefits of AI are widely shared.
