IMF: AI a “Tsunami” reshaping global labor market

Shafaq News/ Artificial intelligence is sweeping through the global labor market like a “tsunami,” the head of the International Monetary Fund (IMF) said on Tuesday, warning that up to 60% of jobs in advanced economies could be transformed or eliminated by the emerging technology.

Kristalina Georgieva, the IMF’s managing director, told the World Governments Summit in Dubai that AI’s rapid adoption was already reshaping industries worldwide and could deepen inequality if not managed properly.

“What we assess is that artificial intelligence is already like a tsunami hitting the labor market,” Georgieva said. “In advanced economies, 60% of jobs over the next short period of time will be either enhanced, become more productive or transformed or eliminated.”

The impact is expected to be lower in emerging markets, where around 40% of jobs could be affected, and in low-income countries, where the figure drops to 26%, she said.

Georgieva said AI’s rise could either boost global productivity or widen existing inequalities, depending on how governments and businesses respond.

“It can be a great story, a world that becomes more productive,” she said. “Or a sad story – a world that is more divided. The haves have more, the have-nots are completely lost.”

She cautioned against assumptions that lower-income countries would be less affected, warning that opportunities created by AI may “not be available to all.”

Asked whether AI was the “tail wagging the dog” in global economic shifts, Georgieva responded that the “dog is already barking at us and we better be prepared.”

Georgieva also addressed broader economic concerns, including US President Donald Trump’s recent threats to impose new tariffs and the challenges of navigating a multipolar world, but AI’s labor market impact remained a focal point of her remarks.