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IMF chief warns AI could cut or reshape about 40% of jobs

Georgieva said AI investment is also propping up growth, even as labor market pressure falls first on new graduates, according to IMF chief Kristalina Georgieva as discussed by Forexlive.

Reported · Written up by our desk · Asia

IMF Managing Director Kristalina Georgieva said AI is likely to change or eliminate around 40% of roles, describing it as a slow moving tsunami for jobs, Forexlive reports. Forexlive also notes that Singapore’s president warned that first jobs for graduates are drying up, while Georgieva said AI investment can still support growth.

Forexlive said Georgieva’s framing of AI as both a demand shock and an investment shock aligns with recent hawkish Fed commentary about AI driven capital spending and persistent inflation pressure, implying higher rates could last longer.

Forexlive added that markets are watching the IMF’s World Economic Outlook for whether it adjusts its growth forecasts in response to AI investment strength or the impact of the energy shock.

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