In a stark warning at the World Economic Forum in Davos, IMF Managing Director Kristalina Georgieva highlighted the seismic shifts artificial intelligence is unleashing on global labor markets. Describing it as a ‘tsunami,’ she noted that AI is not just automating jobs but also augmenting others, creating a complex landscape where opportunities vary dramatically by region.
Speaking during a key session, Georgieva emphasized that while the world has entered the AI era, the benefits are unevenly distributed. ‘AI is rapidly transforming economies. Some jobs are expanding, others vanishing,’ she said, stressing the urgent need for massive investments in upskilling workforces to prepare societies for this change.
She pointed out specific areas where AI boosts productivity, such as translation, language processing, and research, where it acts as a powerful assistant rather than a replacement. However, concerns linger for communities lacking AI access, exacerbating global divides.
IMF data reveals that 40% of jobs worldwide are exposed to AI, with advanced economies facing up to 60% impact compared to 20-26% in poorer nations. Some roles will improve, others evolve or disappear entirely.
Georgieva projected AI could add 0.1-0.8% to global growth. At the higher end, this might surpass pre-pandemic levels, but success hinges on equitable adoption.
India’s Electronics and IT Minister Ashwini Vaishnaw cautioned that building massive AI models alone won’t confer power. True strength lies in the fifth industrial revolution’s ROI—delivering maximum benefits at minimal cost.
Saudi Arabia’s Investment Minister Khalid Al-Falih underscored the global race for AI infrastructure but insisted its real power emerges when accessible to all. He advocated spreading AI worldwide, noting its pivotal role in Saudi development.
As leaders converge in Davos, the message is clear: embracing AI requires proactive skill-building to harness its promise without widening inequalities.
