International Monetary Fund (IMF) managing director Kristalina Georgieva has warned that artificial intelligence could reshape employment worldwide, with millions of jobs facing the prospect of being transformed, downgraded or eliminated.
Speaking at the start of the IMF’s annual meetings in Bangkok, Thailand, Georgieva estimated that around 40 per cent of jobs would eventually be affected by the technology.
Describing the development as a “slow-moving tsunami”, she said AI was fundamentally changing how people work and live, adding that its effects were already beginning to emerge.
“It is a transformative technology. It so completely changes how we work, how we live,” Georgieva said.
“Love it, hate it, or fear it. It is here, and we are already seeing the first wave of impact.”
Young Workers Face Fewer Opportunities to Start Their Careers
Georgieva identified young people entering the labour market as a group of particular concern, warning that the disappearance of entry-level positions could make it harder for them to establish careers.
She explained that routine and repetitive jobs have traditionally provided a starting point for young workers, allowing them to gain experience and progress into more senior positions.
“People to worry about, first and foremost, are young people that are coming into the labor market,” she said.
“Normally, they would get into these routine, repetitive jobs and then grow up the ranks.”
Her comments highlight concerns about how graduates and other young jobseekers will gain their first professional experience if employers increasingly turn to AI for tasks previously performed by junior staff.
Singapore President Raises Concerns Over Graduate Employment
Singapore President Tharman Shanmugaratnam also raised concerns about the changing employment landscape during the gathering in Thailand.
He pointed to a decline in demand for workers seeking their first jobs after completing university, describing the issue as one that required urgent attention.
“There is a particular problem that we have to address very soon and that is that the first rung in employment, your first job upon graduation, is now seeing less demand,” Shanmugaratnam said.
His remarks echoed Georgieva’s concerns about the challenges facing young people as businesses reconsider the roles they need and the tasks that can be performed using AI.
IMF Chief Warns of Pressure on Government Tax Revenue
Georgieva also highlighted the implications of changing employment patterns for public finances.
Income tax represents a major source of government revenue, including in the United Kingdom.
If AI significantly changes the number and nature of jobs available, the resulting changes to employment and earnings could affect the tax income on which governments rely.
Her warning comes as Britain faces growing concern over the employment prospects of its younger population.
Nearly one million people aged between 16 and 24 in the UK are classified as NEETs, meaning they are not in employment, education or training.
Martin Sorrell Blames Hiring Costs for UK Employment Concerns
Advertising executive Sir Martin Sorrell has separately warned that the cost of employing workers in Britain is making businesses more cautious about recruitment.
He pointed to Labour’s increase in employer National Insurance contributions and changes to workers’ rights as factors contributing to what he described as restrictions on hiring.
Speaking to the Daily Mail, Sorrell argued that employment costs and reduced flexibility were influencing employers’ decisions at a time when AI was becoming increasingly capable of replacing human labour.
“The changes in the labour laws, the cost of hiring people and the inflexibility is making people more cautious about hiring,” he said.
“With AI coming down the track, AI will increasingly replace labour as a result.”
