The International Monetary Fund (IMF) warns that AI is affecting the job market like a catastrophe, even though it is emerging as a powerful driver of economic growth.
Speaking in a CNBC interview at the World Economic Forum in Davos, IMF Managing Director Kristalina Georgieva says AI could lift global growth, but warns that its impact on jobs is arriving with overwhelming force.
“Definitely, we need to recognise that AI is a major factor for economic growth. We see potential of up to 0.8% boost to growth over the next years. But it is hitting the labor market like a tsunami, and most countries and most businesses are not prepared for it.”
Georgieva says the pace of change is forcing an urgent rethink of skills and workforce readiness, as AI-driven disruption accelerates across industries.
She urges governments and companies to focus immediately on how workers acquire new capabilities that are already becoming essential, rather than treating reskilling as a long-term concern.
“What do they have to do? They need to think about the new skills that are already necessary and how they’re going to have these new skills. I think that the conversations here about AI hopefully would bring more clarity around where we are headed.”
The IMF chief says the organization has assessed how prepared countries are for AI adoption, and the results reveal stark global inequality.
“We have done an assessment of preparedness for AI. Oh my God, the result is an accordion of those that are ready, mostly advanced economies, and those that are absolutely not.”
In November, MIT published a study that revealed AI can replace 11.5% of US jobs. According to MIT, the sectors with the highest exposure are finance, healthcare and professional services.
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