IMF Chief Warns: AI Threatens 40% of Global Jobs, Urges Policy Safeguards

The rapid advancement of artificial intelligence (AI) is set to impact almost 40 percent of jobs worldwide, according to the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva. In a blog post, Georgieva highlighted the negative ramifications of AI on the global labor market, underscoring the potential replacement of jobs and deepening inequality. However, she also recognized the potential for AI to boost productivity, global growth, and income levels. The IMF conducted an analysis that revealed advanced economies would be more susceptible to the benefits and pitfalls of AI, with approximately 60 percent of jobs potentially affected. While half of these exposed jobs could benefit from AI integration, the other half may face a decline in demand, leading to reduced wages and hiring. On the contrary, emerging markets and low-income countries are expected to experience lower levels of AI exposure. However, the IMF warned that these countries lack the necessary infrastructure and skilled workforce to capitalize on the benefits of AI, potentially widening the inequality gap among nations. The IMF has developed an AI Preparedness Index to assess countries’ readiness for AI adoption, revealing that wealthier economies displayed higher levels of preparedness. Singapore, the United States, and Denmark ranked the highest on the index. To address the challenges posed by AI, the IMF emphasized the importance of designing policies that leverage its potential while safeguarding those adversely affected.