The IMF warns that AI could impact 40% of jobs globally, with young workers most affected, while sustaining 3% global economic growth.
AI Investment Sustains Global Growth Amid Challenges
The International Monetary Fund (IMF) has indicated that investment in artificial intelligence (AI) is helping maintain global economic growth at approximately 3% annually, even as energy price shocks affect numerous countries. This statement was made by IMF Managing Director Kristalina Georgieva during the opening of the IMF and World Bank annual meetings in Bangkok.
Georgieva described AI as a "slow-moving tsunami" that is expected to impact around 40% of jobs globally, with advanced economies facing a hit of about 60%. She noted that young workers would be the first affected, as AI increasingly automates routine tasks typically associated with entry-level positions.
Regional Growth Impacts
During her address, Georgieva highlighted that Asian economies specializing in AI hardware are poised to benefit significantly, potentially adding between 0.2 to 1 percentage point to growth rates in both advanced and emerging economies. This rise in growth could offset the negative effects of aging populations in these regions.
In its previous update, the IMF reported that top AI hardware exporters, including Taiwan, South Korea, Thailand, and Malaysia, exceeded initial growth forecasts by an average of 4.4%, with South Korea's economy expanding at a remarkable 7.5% rate.
Concerns Over Job Displacement and Inequality
Georgieva expressed concern that the AI boom is not benefiting all countries equally, warning that many nations outside the AI supply chain may be left behind. She projected a slowdown in global growth to 3% by 2026, down from 3.5% in 2025, largely due to rising energy prices amid geopolitical tensions.
Furthermore, she cautioned that the shift of income from workers to capital owners could strain public finances, reducing the tax revenue that governments rely on. World Bank President Ajay Banga mentioned the bank's support for "small AI" initiatives tailored for agriculture, healthcare, and education in developing nations, aiming to mitigate these disparities.
The IMF is set to release its comprehensive World Economic Outlook on October 13, marking the first revision of its global growth forecast since July.
