IMF Warns AI Poses Long-Term Threat to Jobs During Annual Meetings in Bangkok

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), highlighted the potential long-term impact of artificial intelligence (AI) on the job market during the opening of the IMF and World Bank annual meetings in Bangkok, Thailand. She described AI as a slow-moving tsunami that could significantly alter employment landscapes, with an estimated 40% of jobs worldwide expected to be augmented, downgraded, or eliminated over time. Georgieva noted that while AI is reducing demand for routine work, it is simultaneously creating lower-paid jobs in sectors such as construction, a trend she cautioned should not be celebrated.

Singapore's President Tharman Shanmugaratnam echoed these concerns, stating that the demand for entry-level positions for recent graduates is declining. Data from Singapore indicates that only about 74% of the 2025 university graduates found full-time employment, a decrease from approximately 88% for the 2022 cohort. This shift is particularly evident in sectors most affected by AI, with unemployment among new graduates rising to about 10% from under 4%.

Georgieva also emphasized that AI investment is acting as both a demand and investment shock, potentially boosting growth in advanced Asian economies by half a percentage point to a full point. This growth could help maintain global economic expansion around 3%, despite challenges posed by energy supply shocks. However, she warned that the shift towards capital over labor could erode traditional tax bases, posing a long-term fiscal risk for heavily indebted governments. The IMF's upcoming World Economic Outlook is expected to provide updated growth forecasts, weighing the effects of AI investment against the ongoing energy crisis.

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Source: KLEA News