International Monetary Fund Managing Director Kristalina Georgieva said strong investment in artificial intelligence infrastructure is helping sustain global economic growth at around 3%, delivering significant economic gains, particularly in Asia. However, she warned of a broad wave of disruption that could affect labor markets, tax systems and education.
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Speaking on Monday during the annual meetings of the IMF and World Bank in Bangkok, Thailand, Georgieva said the expansion of AI investment had already generated a major boost to demand and investment. This could increase growth in advanced Asian economies by between 0.5 and 1 percentage point, and in emerging Asian economies by between 0.2 and 0.8 percentage points.
She said AI had become an economic reality that could not be ignored, whether welcomed or viewed with concern. The acceleration of AI-related investment is helping the global economy maintain growth despite pressures stemming from an energy supply shock.
The IMF projected in July that global economic growth would reach 3% in 2026. The fund is scheduled to release an update to its economic forecasts on Tuesday.
AI threatens to transform 40% of jobs
Georgieva warned that the world was facing what she described as a “slow-motion tsunami” resulting from the expanding use of AI, referring to the profound changes that could gradually reshape jobs and the skills required in the workplace.
According to IMF research, around 40% of jobs worldwide will be affected by AI, whether through enhanced worker capabilities, reduced demand for certain roles or their complete elimination. The share rises to around 60% in advanced economies.
She noted that these changes would have far-reaching implications for labor markets, economic growth and education, as well as tax systems and government revenue collection, amid an expected shift away from human labor toward capital and technology.
A preliminary study found that 10% of jobs in the United States now require AI-related skills. This comes alongside a decline in routine and repetitive jobs and an increase in lower-paid positions in the construction and data center sectors.
Georgieva stressed that AI was a transformative technology reshaping work and everyday life. She cited her own use of an AI-powered personal assistant that provides her with a 30-second audio summary of her daily schedule every morning.
Asia benefits from the investment boom
The IMF managing director said the United States, China and India were among the leading producers across the AI supply chain, while many companies supplying the hardware and equipment needed to build AI infrastructure were based in Asia.
She said this position gave Asian economies opportunities to benefit from the global expansion of AI investment, including Thailand, which is hosting this year’s annual meetings of the IMF and World Bank.
Around 18,000 people are expected to attend the week-long meetings, including financial officials representing the IMF’s 191 member countries.
However, several finance ministers are absent because of domestic priorities. They include US Treasury Secretary Scott Bessent, Spanish Finance Minister Arcadi España, and the finance ministers of Canada, India and the Democratic Republic of the Congo.
The Democratic Republic of the Congo is facing an Ebola outbreak that has killed at least 4,000 people, according to a source familiar with attendance arrangements.
Meanwhile, sources said Saudi Finance Minister Mohammed Al-Jadaan, who chairs the IMF’s steering committee, still intends to attend the meetings despite the suspension of operations at Riyadh Airport following deadly attacks carried out by Iran-aligned Houthi forces over the weekend.
Warnings over declining job opportunities for graduates
Singaporean President Tharman Shanmugaratnam highlighted the challenges AI poses to employment opportunities for recent graduates, urging governments to take urgent action to address declining demand for entry-level jobs.
He said the first step in a career securing a job after graduation was facing weaker demand, requiring a reassessment of recruitment policies, training and workforce preparation.
He also warned that economic disparities between developed and developing countries could widen because of differences in their ability to adopt and benefit from AI technologies.
He stressed that delays in responding to these changes could deepen inequalities in economic growth and employment opportunities across economies.
Tharman called for AI to be used to create good-quality jobs that allow workers to develop their skills and advance in their careers, rather than allowing technological progress to become an obstacle to their future prospects.
World Bank focuses on smaller AI applications
World Bank President Ajay Banga expressed a less pessimistic view of AI’s impact on entry-level jobs, saying he was not convinced that the technology would necessarily eliminate them.
He explained that much of the expected disruption could be concentrated in advanced economies developing large-scale AI models, while emerging markets have different needs and patterns of technology use.
Banga said the World Bank was focusing on what he described as “small AI" applications that do not require enormous computing power or extensive technological infrastructure.
These applications aim to improve productivity and the efficiency of essential services, particularly in agriculture, healthcare and education, by providing practical tools that farmers, health clinics and teachers can use.
This approach reflects the differing priorities of advanced and developing economies in adopting AI. While advanced economies focus on developing large-scale models and the infrastructure needed to run them, developing economies seek to use lower-cost applications to achieve direct productivity gains.
Statements by officials from the IMF and World Bank highlight the challenge facing governments in the coming period: harnessing the growth opportunities offered by AI while addressing its potential consequences for employment, education and the distribution of economic gains.
