Artificial intelligence could transform about 40 per cent of jobs worldwide, raising concerns about employment opportunities, wage inequality and the future of work, the International Monetary Fund (IMF) has warned.
Speaking at the IMF and World Bank Group’s 2026 Annual Meetings in Bangkok, Thailand, IMF Managing Director Kristalina Georgieva said AI could improve productivity in some roles while reducing demand for workers in others.
The estimate covers jobs that could be enhanced, downgraded or eliminated by the technology. It does not mean that 40 per cent of jobs will disappear.
Georgieva urged governments to prepare workers for changes in the labour market through better education, continuous training and policies that help people adapt to new employment demands.
Young Workers Face Growing Pressure
Georgieva said early evidence from the United States showed that demand for routine, repetitive jobs was declining while employers increasingly sought workers with AI-related skills.
Although some new employment opportunities were emerging, she warned that many were concentrated in lower-paying roles.
Young people entering the workforce could be particularly vulnerable because entry-level jobs often provide the experience needed to progress into more specialised and better-paid positions.
A decline in these opportunities could make it harder for graduates to gain workplace experience and build long-term careers.
Singapore President Tharman Shanmugaratnam also warned that AI-driven automation could weaken employment opportunities for young people and reduce pathways into middle-income jobs if governments and businesses failed to respond.
He called for stronger cooperation between employers and educational institutions, including more internships, workplace training and practical learning opportunities.
Governments Urged to Invest in Skills
The IMF chief said governments needed better information about how AI was changing employment before designing policies to address its effects.
She also called for education systems to place greater emphasis on lifelong learning, allowing workers to update their skills as technology changes the requirements of their jobs.
Governments may also need to reconsider how they finance public services if AI changes the balance between income earned by workers and profits generated by businesses.
The IMF has previously warned that tax systems should not encourage businesses to replace workers with technology simply because automation receives more favourable tax treatment.
World Bank Sees Opportunities in Smaller AI Tools
World Bank Group President Ajay Banga said AI could also help developing economies improve productivity and create employment, particularly through smaller applications designed for local needs.
He identified agriculture, healthcare, manufacturing, tourism and infrastructure as sectors where AI tools could support workers and businesses.
For example, farmers could use mobile applications to identify crop diseases and access information about agricultural inputs, financing and markets. Healthcare workers could also use AI tools to support patient assessments and connect with medical specialists.
Banga argued that developing countries did not need to rely exclusively on expensive, large-scale AI models to benefit from the technology.
However, he said governments would need to improve electricity supply, digital infrastructure and access to relevant skills to help businesses adopt AI effectively.
The World Bank estimates that about 1.2 billion young people will reach working age over the next 15 years, increasing the urgency of creating productive employment opportunities.
AI Could Widen Economic Inequality
The impact of AI will vary across countries and occupations. The IMF estimates that around 60 per cent of jobs in advanced economies could be affected, compared with approximately 40 per cent in emerging markets.
Some workers may become more productive and earn higher wages by using AI, while others could face reduced demand for their skills or greater competition for available jobs.
Developing countries also face the risk of falling behind if they lack the infrastructure and skilled workforce needed to benefit from the technology.
The IMF has therefore called for policies that support innovation while ensuring that workers can access training, social protection and new employment opportunities.
As AI adoption accelerates, the challenge for governments and businesses will be to capture its productivity benefits while helping workers adjust to changes in the labour market. The outcome will depend partly on how effectively countries prepare their education systems, businesses and workers for the transition.
Sources: IMF and Reuters.
