The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has warned that artificial intelligence (AI) could affect about 40 per cent of jobs worldwide, urging governments to introduce policies that prepare workers for rapid changes in the labour market.
Georgieva delivered the warning during a panel session titled “Small Scale AI: More and Better Jobs” at the 2026 IMF and World Bank Annual Meetings in Bangkok, Thailand, on October 12.
She described artificial intelligence as a “slow-moving tsunami” for the labour market, warning that the technology could improve some jobs, downgrade others or eliminate certain roles altogether.
Her remarks have renewed attention on how governments, employers and educational institutions can prepare workers for an economy increasingly shaped by automation and AI-powered tools.
IMF warns AI could transform jobs, not just eliminate them
The IMF’s estimate that AI could affect 40 per cent of global employment does not mean that the same proportion of jobs will disappear.
Rather, the technology could change how workers perform their duties, alter the skills employers require and reduce demand for certain tasks.
The IMF’s earlier research found that nearly 40 per cent of jobs worldwide are exposed to AI. In advanced economies, the proportion rises to about 60 per cent because many roles involve tasks that AI systems can potentially perform or support.
Some workers could benefit from higher productivity as AI assists with research, analysis, communication and routine administrative activities.
Others could face reduced hiring opportunities, lower wages or displacement if employers automate tasks previously performed by people.
The extent of the disruption will depend on how businesses adopt the technology, how occupations evolve and whether workers can access the training needed to adapt.
IMF chief urges governments to rethink economic policies
Georgieva’s warning comes as policymakers face growing pressure to balance the economic benefits of AI with its potential social costs.
Governments may need to reconsider taxation, education, workforce training and social protection as AI changes the relationship between businesses, workers and productivity.
One concern is that traditional tax systems rely heavily on wages and employment income. If production becomes increasingly capital-intensive, policymakers may need to reassess how public revenue is raised.
The IMF has also argued that fiscal policy should support research, innovation and reskilling while avoiding incentives that encourage automation at the expense of workers.
Such reforms would not necessarily mean restricting AI adoption. Instead, they would aim to help economies capture productivity gains while reducing the risk that vulnerable workers bear a disproportionate share of the transition.
Young workers face pressure as entry-level jobs change
One of the emerging concerns surrounding AI adoption is its potential effect on young people entering the labour market.
Many workers traditionally begin their careers by handling routine assignments, gathering information, preparing reports and supporting experienced colleagues.
However, some of these tasks can now be performed with AI tools, potentially changing the number and type of entry-level positions employers offer.
Georgieva has warned that this could weaken traditional career pathways if businesses reduce opportunities for inexperienced workers to gain practical skills.
The concern extends beyond job losses. Entry-level positions often provide the experience workers need to progress into more specialised roles.
If those opportunities decline, employers and educational institutions may need to develop alternative routes for young people to acquire workplace experience.
Apprenticeships, structured graduate programmes, practical projects and supervised training could become increasingly important in helping new entrants build the judgement and communication skills that complement AI.
Developing economies face a different set of challenges
The impact of artificial intelligence will not be uniform across countries.
According to the IMF’s labour-market analysis, approximately 40 per cent of jobs in emerging-market economies are exposed to AI, compared with about 26 per cent in low-income countries. Advanced economies face exposure of roughly 60 per cent.
Lower exposure does not automatically mean lower long-term risk.
Developing countries may have fewer jobs immediately affected by AI, but they can also face shortages of digital infrastructure, skilled workers and investment needed to benefit from the technology.
These limitations could widen the productivity gap between countries that adopt AI effectively and those that struggle to integrate it into their economies.
For Nigeria and other African economies, the policy challenge includes expanding reliable internet access, improving digital literacy, strengthening technical education and supporting businesses adopting useful AI applications.
Agriculture, healthcare, education, financial services and public administration are among the sectors where properly implemented AI tools could support productivity. However, the benefits will depend on local infrastructure, affordability, workforce preparation and responsible use.
Education and reskilling become increasingly important
As AI changes workplace requirements, workers may need to update their skills throughout their careers rather than depend solely on qualifications acquired at the beginning of their working lives.
The IMF has identified education, reskilling and lifelong learning as important ways to help workers adapt to AI-driven changes.
Training programmes could combine technical knowledge with skills such as problem-solving, communication, critical thinking and professional judgement.
These capabilities can help workers use AI productively while checking its outputs, identifying errors and making decisions that require human context.
Governments and employers will also need to ensure that training opportunities reach workers who may not have the resources to pay for expensive courses or access advanced technology.
Without such support, AI could widen existing inequalities between workers who can adapt quickly and those who cannot.
Balancing innovation with worker protection
Artificial intelligence offers businesses opportunities to reduce costs, improve services and develop new products. However, the speed of adoption could create difficulties for workers and communities that depend on occupations undergoing rapid change.
The policy response will therefore need to balance innovation with appropriate safeguards.
Possible measures include stronger labour-market data, targeted retraining, effective unemployment support and education policies aligned with changing employer needs.
Businesses also have a role in communicating how AI will affect their workforces and helping employees transition into new responsibilities where possible.
For governments, the task is to create conditions in which AI-driven productivity gains translate into wider economic benefits rather than becoming concentrated among a small group of firms, investors and highly skilled workers.
The policy decisions ahead
Georgieva’s warning highlights a central challenge for the global economy: AI could improve productivity while simultaneously disrupting established employment patterns.
The IMF’s 40 per cent estimate measures the share of global jobs exposed to the technology, not a forecast that 40 per cent of workers will lose their jobs.
The outcome will depend partly on how quickly countries adapt their education systems, labour policies and social protection arrangements.
For developing economies such as Nigeria, preparation will require investment in digital infrastructure, practical skills and access to AI tools that address local economic needs.
As adoption accelerates, governments and employers will face growing pressure to ensure workers can adapt to changing roles and share in the benefits of technological progress.
