IMF Chief Sounds Alarm: “Tsunami” of AI Hits Global Labour Market

International Monetary Fund (IMF) Managing Director Kristalina Georgieva issued a stark warning at the World Economic Forum in Davos, describing artificial intelligence as a “tsunami” already crashing into the global labour market. Speaking during a panel discussion, she highlighted how AI is simultaneously enhancing productivity in some roles while displacing or fundamentally altering others, creating an uneven “accordion of opportunities” that favours advanced economies over developing ones.

According to IMF analysis, an average of 40 per cent of jobs globally are exposed to AI—either improved, scrapped, or significantly transformed—often without corresponding wage gains. The impact is far greater in advanced economies, where 60 per cent of jobs face disruption, compared to just 20–26 per cent in low-income countries. Georgieva expressed particular concern for communities lacking access to AI tools, which could widen existing inequalities as the technology accelerates economic shifts.

While AI drives clear productivity gains—such as in translation, interpretation, and research analysis—the overall effect on global growth remains uncertain. The IMF estimates potential boosts ranging from a modest 0.1 per cent to a substantial 0.8 per cent increase in productivity. If the higher end materialises, it could push worldwide economic growth beyond pre-pandemic levels, offering a silver lining amid the disruption.

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The discussion also featured perspectives from global leaders. India’s Minister of Electronics and Information Technology, Ashwini Vaishnaw, argued that merely building large AI models does not equate to national power; true advantage lies in the economics of deployment—delivering the lowest-cost solutions for maximum return on investment. Saudi Arabia’s Minister of Investment, Khalid Al-Falih, stressed the urgency of making AI infrastructure accessible globally rather than confining it to competitive national silos, calling diffusion essential for harnessing its full potential.

As nations race to build AI capabilities, Georgieva urged proactive investments in reskilling workers and supporting affected communities to navigate the fifth industrial revolution. The session underscored a critical message: while AI promises transformative growth, unprepared societies risk being swept away by its rapid tide.

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