A senior global financial leader has issued a stark warning that the rapid advancement of artificial intelligence will create a profound disruption in labor markets worldwide, with younger generations expected to bear the brunt of the impact.
Speaking at a major international economic forum, the Managing Director of the International Monetary Fund described the impending change as a “tsunami hitting the labour market.” According to recent IMF analysis, approximately 60% of jobs in advanced economies are likely to be affected by AI in the coming years, a figure that stands at 40% globally. The effects will range from job transformation and enhancement to outright elimination.
The official highlighted a concerning disparity in how these changes will manifest. While some positions, particularly those already being “enhanced” by AI, may see increased productivity and corresponding wage growth, many entry-level roles traditionally filled by younger workers are at high risk of disappearing. This shift could make it significantly more difficult for new entrants to secure stable employment and begin their careers.
Furthermore, there is a risk that workers in roles not directly transformed by AI could face economic pressure, as their wages may stagnate without the productivity gains the technology offers elsewhere, potentially squeezing the middle class.
A primary concern raised was the current pace of technological development outstripping the establishment of necessary safeguards and regulations. The official stressed the urgent need for frameworks to ensure AI development is both safe and inclusive, warning that the world is transforming faster than our ability to manage the change responsibly.
The discussion at the forum reflected broader anxieties about the technology’s societal impact. Other participants emphasized that a core business objective of AI adoption is to boost productivity and reduce costs, which inherently carries implications for employment levels. Calls were made for a managed transition that ensures the economic gains from increased productivity are distributed equitably across society, not concentrated among a few powerful firms.
Concerns were also voiced about the geopolitical landscape potentially hindering AI’s progress. Another senior European financial official noted that the capital, energy, and data-intensive nature of AI development requires international cooperation. A climate of growing mistrust and trade barriers between major economies could restrict the flow of capital and data, ultimately slowing innovation and its potential benefits.
While some forum participants expressed deep concern about a fundamental rupture in the global economic order, others advocated for a focus on building cooperative alternatives to navigate the new technological and economic landscape. The consensus, however, pointed to an urgent need for proactive global strategies to harness AI’s potential while mitigating its disruptive effects on workers and economies.