Artificial intelligence will unleash a 'tsunami' on the global labour market, with young people bearing the brunt of job losses, the head of the International Monetary Fund has warned. Kristalina Georgieva told the World Economic Forum in Davos that IMF research indicates 60% of jobs in advanced economies will be affected by AI, either enhanced, eliminated or transformed.
Speaking on Friday, Georgieva said entry-level roles traditionally taken by younger workers were most at risk of being wiped out. '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,' she said. She also warned that the middle class would inevitably be squeezed, with pay potentially falling for those whose jobs are not directly enhanced by AI.
Georgieva expressed concern that AI is advancing too rapidly for regulators to keep up. 'This is moving so fast, and yet we don't know how to make it safe. We don't know how to make it inclusive. Wake up, AI is for real, and it is transforming our world faster than we are getting ahead of it,' she said.
Other speakers at Davos echoed these concerns. Christy Hoffman, general secretary of the UNI global union, said the business aim of AI was to increase productivity and cut jobs, calling for the benefits to be distributed fairly. Microsoft chief executive Satya Nadella warned that AI could lose 'social permission' if it only benefits a few powerful tech firms.
European Central Bank president Christine Lagarde cautioned that growing mistrust between economies, particularly US tariff barriers, could hamper the AI boom. She highlighted widening global inequality and the need for cooperation to define new rules for AI development.
