AI could help keep the global economy growing while pulling the first rung of the career ladder out from under young workers.
That’s the warning from International Monetary Fund managing director Kristalina Georgieva, who described AI as a “tsunami” for jobs during a conversation in Bangkok, where Thailand is hosting the IMF–World Bank Annual Meetings from October 12–18.
Georgieva told a panel on Monday that while AI investment is helping sustain global growth, a stronger economy doesn’t necessarily mean better career prospects, especially for young people.
“You have those that build the infrastructure for AI, and many of them are in Asia, including Thailand,” Georgieva said. “So that shift in higher gear is what is keeping the world economy growing at 3% — around 3% — despite the fact we are being dragged down by the energy supply shock.”
The IMF estimates that AI will affect about 40% of jobs worldwide, rising to 60% in advanced economies, with some jobs enhanced, others downgraded, and some eliminated.
“And when we look at this, what we recognize is that the people to worry about first and foremost are young people who are coming into the labor market,” Georgieva said.
“Normally, they would get into these routine, repetitive jobs and then grow up the ranks,” Georgieva said. “But if they’re gone, I don’t think any young person wants to be a barista in a coffee shop, as you know, [their] professional future.”
LinkedIn executive Aneesh Raman has previously described the career ladder in the age of AI as a “climbing wall,” requiring sideways moves rather than linear promotions. An HR strategist has also recently told Business Insider that it’s time to start hiring for soft skills and capabilities instead of whether someone could make a pivot table.
Georgieva said the government would need to rethink taxation and education as AI changes the job market.
“Traditionally, governments would generate revenues by taxing mostly people. Well, if AI changes the structure of the labor market and then there is less labor, more capital, what do we tax?” Georgieva said.
“Get governments to recognize they have a huge responsibility to rethink how education should be done in the world of AI,” Georgieva added, “And recognize that no more we can acquire a skill and hold on to it for our life, and that lifelong learning is actually a paramount necessity.”
