Artificial Intelligence (AI) is no longer a distant idea. It is already reshaping how people work and live. Speaking to India Today, the International Monetary Fund (IMF) chief, Kristalina Georgieva, compared the impact of AI on jobs to a “tsunami,” i.e., powerful, fast and impossible to ignore.
She said countries must act quickly to grab the opportunities while managing the risks.
AI IS MOVING AT RECORD SPEED
The IMF chief said the speed at which AI is changing work and daily life is the fastest seen in any technological shift in history. “AI is already here,” she said, warning that countries risk falling behind if they do not move forward boldly.
At the same time, she said that AI brings both excitement and risk. It can raise productivity and economic growth, but it can also displace workers.
40% OF JOBS GLOBALLY COULD BE AFFECTED
The IMF estimates that around 40% of jobs worldwide may be affected by AI in the coming years. In advanced economies, that figure could rise to 60%.
But “affected” does not always mean replaced. Some jobs may become more efficient and better paid. Others may disappear or change completely.
She described AI as “like a tsunami hitting the labour market.”
In the United States, one in ten jobs already requires AI-related skills. These roles tend to pay more. People earning higher wages then spend more, which creates demand for low-skill workers in restaurants, in hotels, in entertainment, she says.
Interestingly, total employment in some areas has increased. However, many of the new roles are low-paying. As a result, the labour market is becoming more divided.
THE MIDDLE IS GETTING SQUEEZED
Georgieva explained that high-skilled workers are seeing better pay because of AI. Low-skilled workers are finding jobs, but often at lower wages. The biggest pressure is on middle-level jobs, which are neither highly specialised nor low-service roles.
She also pointed out that automation is reducing entry-level jobs, making it harder for recent graduates to find work. This is creating anxiety among young people entering the workforce.
WHAT GOVERNMENTS CAN DO
Despite the risks, the IMF chief said countries are not helpless. She outlined two key areas where policymakers must focus.
First, education needs to change. People must learn how to adapt and reskill throughout their careers. In an AI-driven world, the ability to “learn to learn” will be essential.
Second, governments must strengthen social safety nets. Workers who lose jobs temporarily should have support while they retrain or look for new opportunities.
She highlighted Denmark’s flexible labour model as an example. It combines flexibility for employers with strong security for workers. She also welcomed India’s labour market reforms, saying flexibility must go hand in hand with protection.
BALANCING GROWTH WITH PROTECTION
For the IMF, helping countries seize the benefits of AI while managing the risks is now a key priority.
Georgieva’s warning was direct but balanced. AI can boost growth and raise incomes. Yet if not handled carefully, it can deepen inequality and unsettle workers. The challenge for governments, she said, is to act early, stay flexible and ensure that the gains from AI are shared widely, and not captured by a few.
