IMF Managing Director Kristalina Georgieva has said investment in artificial intelligence is keeping the world economy growing at around 3 percent, while warning that the technology poses a "slow-moving tsunami" for labour markets, taxation and education.
Georgieva made the remarks on Monday at the weeklong IMF and World Bank meetings in Bangkok, Reuters reported. "AI, love it, hate it. It's already here," she said, adding that the shift into higher gear is what is keeping the world economy growing at around 3 percent despite being dragged down by the energy supply shock.
Growth held up, jobs under pressure
The 3 percent figure comes from the IMF's July forecast; the fund is due to release an updated projection on Tuesday, October 13. Georgieva pointed to IMF research showing that about 40 percent of jobs will be augmented, downgraded or eliminated by AI, with the share climbing to as high as 60 percent in advanced economies.
She said the shift of value from labour to capital will carry implications for employment, growth, education and even how governments earn revenue through taxation. One study cited in the report found that 10 percent of jobs in the United States now require AI skills, while routine, repetitive jobs are declining and low-paying jobs are rising in construction and data centres.
The remarks capture the double-edged assessment emerging from the Bangkok meetings: AI spending is currently propping up headline growth, even as policymakers grapple with how the same technology could reshape work and public finances in the years ahead.
Sources:
PYMNTS: IMF Says AI Fuels Growth but Could Disrupt Labor Markets
Georgieva made the remarks on Monday at the weeklong IMF and World Bank meetings in Bangkok, Reuters reported. "AI, love it, hate it. It's already here," she said, adding that the shift into higher gear is what is keeping the world economy growing at around 3 percent despite being dragged down by the energy supply shock.
Growth held up, jobs under pressure
The 3 percent figure comes from the IMF's July forecast; the fund is due to release an updated projection on Tuesday, October 13. Georgieva pointed to IMF research showing that about 40 percent of jobs will be augmented, downgraded or eliminated by AI, with the share climbing to as high as 60 percent in advanced economies.
She said the shift of value from labour to capital will carry implications for employment, growth, education and even how governments earn revenue through taxation. One study cited in the report found that 10 percent of jobs in the United States now require AI skills, while routine, repetitive jobs are declining and low-paying jobs are rising in construction and data centres.
The remarks capture the double-edged assessment emerging from the Bangkok meetings: AI spending is currently propping up headline growth, even as policymakers grapple with how the same technology could reshape work and public finances in the years ahead.
Sources:
PYMNTS: IMF Says AI Fuels Growth but Could Disrupt Labor Markets
