Artificial intelligence is growing faster than ever, and global leaders are beginning to worry about its impact on jobs. IMF Managing Director Kristalina Georgieva, while speaking at the World Economic Forum in Davos, warned that AI could hit the labour market like a “tsunami”. According to her, young people are likely to suffer the most as companies increasingly turn to automation.
Her comments come at a time when many countries are already struggling with youth unemployment. The rapid rise of AI tools is adding a new layer of uncertainty for students and fresh graduates entering the workforce.
Large number of jobs will be affected
The IMF has estimated that around 60% of jobs in developed countries could be affected by AI in some way. On a global level, about 40% of jobs may see changes due to automation. This does not mean all these jobs will disappear, but many roles will change significantly.
Kristalina said “We expect over the next years, in advanced economies, 60% of jobs to be affected by AI, either enhanced or eliminated or transformed – 40% globally,” she said. “This is like a tsunami hitting the labour market.”
In some sectors, AI may help workers do their jobs better and faster. Certain professionals have already seen productivity improvements because of AI tools. However, not everyone will benefit equally from this shift.
Entry-level jobs at most risk
Kristalina Georgieva pointed out that basic and entry-level jobs are the most vulnerable. She said, “Tasks that are eliminated are usually what entry-level jobs do at present, so young people searching for jobs find it harder to get to a good placement”. These roles often involve repetitive tasks, which AI systems can easily automate. Unfortunately, these are also the jobs that young people usually depend on to start their careers.
As companies replace simple tasks with AI, fewer opportunities may be available for first-time job seekers. This could make it harder for young people to gain experience and grow professionally.
Rising anxiety among young workers
The IMF chief’s warning shows a growing concern among young adults. Many of which are already worried about job security, rising living costs, and a competitive job market. The fear that AI could replace human workers is adding to this stress.
Even workers whose jobs are not directly replaced by AI may face lower wage growth, especially if companies do not share productivity gains fairly. “I think it’s time to come to terms with that disruption – and how to manage that disruption,” she said.
Need for training and smart policies
Kristalina Georgieva stressed that governments and businesses must act quickly. Investment in education, skill training, and re-skilling programmes is essential to help workers adapt to an AI-driven economy.
If managed well, AI can support human workers instead of replacing them. But without proper planning and policies, the technology could widen inequality and leave an entire generation struggling to find stable employment.
