Artificial intelligence could eventually alter about 40 per cent of jobs worldwide, with governments under pressure to prepare workers for a labour market that is changing rapidly, International Monetary Fund (IMF) Managing Director Kristalina Georgieva has warned.
Georgieva issued the warning on Monday during a panel on “Small AI: More and Better Jobs” at the 2026 IMF-World Bank Annual Meetings in Bangkok, Thailand.
She described the technology as a gradual but powerful force that could change occupations in different ways, including by improving some roles, reducing the value of others and eliminating certain jobs altogether.
The IMF chief said the impact would vary considerably between economies. About 60 per cent of jobs in advanced economies could be affected, compared with 23 per cent in low-income countries, according to the figures she presented at the meeting.
Georgieva cautioned, however, that lower exposure in poorer economies should not necessarily be viewed as an advantage. In many developing countries, slower AI adoption reflects inadequate infrastructure, limited digital skills and weaker capacity to take advantage of the technology.
The IMF has previously estimated that almost 40 per cent of global employment is exposed to AI, while exposure rises to about 60 per cent in advanced economies.
AI investment is already supporting growth
Georgieva said the AI boom was already influencing the global economy through investment in data centres, computing infrastructure and AI development.
She said the United States, China and India were among the major producers in the AI supply chain, while several Asian economies were benefiting from investments linked to the infrastructure required to support the technology.
According to Georgieva, AI-related investment is helping keep global economic growth at around 3 per cent, despite pressure from energy supply disruptions. She estimated that AI could add between 0.5 and one percentage point to growth in advanced Asian economies and between 0.2 and 0.8 percentage points in emerging Asian economies.
But she stressed that the next stage would depend increasingly on how widely AI is adopted rather than simply how much is invested in building it.
For developing economies to benefit, she said they would need reliable electricity, digital infrastructure, appropriate skills and safeguards that encourage responsible adoption.
Young workers face growing pressure
One of the biggest concerns raised at the meeting was the effect of AI on people entering the labour market for the first time.
Georgieva said an IMF study found that about 10 per cent of jobs in the United States already require AI-related skills.
At the same time, routine and repetitive jobs are shrinking, while employment is expanding in some lower-paying areas, including construction and data-centre-related activities.
The change could create a difficult entry point for young workers because many graduates traditionally begin their careers in routine positions before gaining the experience needed to progress.
Singapore President Tharman Shanmugaratnam, who participated in the same discussion, also warned that opportunities for graduates were becoming more limited, particularly in industries with high exposure to AI.
He said governments and businesses needed to work together to ensure that young people continued to have access to their first jobs and opportunities to acquire practical experience.
Shanmugaratnam also called for changes in higher education, including greater emphasis on internships, workplace attachments, practical training and closer cooperation between universities and employers.
IMF calls for education and tax reforms
Georgieva urged governments to prepare for the labour-market transition rather than wait until large-scale disruption occurs.
She said education systems needed to move towards lifelong learning, allowing workers to acquire new skills throughout their careers.
Governments also need to reconsider tax policies, she said, because a shift from labour towards capital could eventually alter the tax base and reduce governments’ ability to finance programmes supporting affected workers.
The IMF has similarly recommended strengthening digital infrastructure, human capital and labour-market policies so that countries can capture the productivity gains from AI while reducing the risk of greater inequality.
Georgieva said the objective should not be to prevent AI from changing work but to ensure that the technology improves people’s lives.
She argued that AI could take over undesirable or repetitive tasks while allowing people to concentrate more on productive, creative and socially meaningful activities.
‘Small AI’ offers opportunity for developing countries
The Bangkok discussion also focused on the potential of small-scale AI, particularly in developing economies.
World Bank President Ajay Banga said practical AI applications could improve productivity in sectors such as agriculture, healthcare and education without requiring countries to rely exclusively on the largest and most expensive AI systems.
The World Bank has also highlighted small, locally adapted AI tools as an opportunity for developing countries, provided they invest in electricity, connectivity, digital skills, data and effective governance.
The challenge for policymakers, therefore, is becoming twofold: ensuring workers are protected as existing jobs change while creating an environment in which AI can generate new and better employment opportunities.
