IMF's Georgieva speaks at climate conference
IMF Chief Kristalina Georgieva said young people will be among those affected the most by AI. Reuters

International Monetary Fund (IMF) Chief Kristalina Georgieva said up to 40% of all jobs worldwide could end up being affected by AI and called for measures to buffer the impact.

Georgieva said on Monday that AI is like a "slow-moving tsunami" and young people "coming into the labor market are set to be affected the most.

"Normally, they would get into these routine, repetitive jobs and then grow up the ranks. But if they're gone, I don't think any young person wants to be a barista in a coffee shop as a professional future," she added.

"Love it, hate it, or fear it, AI is here," Georgieva said last week during the IMF's Annual Meetings Curtain Raiser, adding that the technology is rapidly becoming an important factor in countries' economic performance.

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The IMF has estimated that AI, if successfully adopted, could eventually add as much as half a percentage point to annual global growth. Georgieva said an increase from around 3% to 3.5% sustained over a decade would be equivalent to adding an economy roughly the size of ASEAN to global output.

Investment is already accelerating. Georgieva said global AI investment as a share of economic output is on track to match or exceed the scale of earlier infrastructure investment waves, including railroads, electricity grids and telecommunications networks.

AI hardware and related technology products now account for more than a tenth of global goods trade, she said.

The benefits, however, have not been distributed evenly. Economies deeply integrated into technology supply chains have gained more from the surge in AI-related investment and trade, while countries with less exposure to the industry have benefited less.

The IMF's July World Economic Outlook Update projected global growth of 3% in 2026 and 3.4% in 2027, with AI-related demand supporting economies linked to global technology supply chains while the Middle East war weighed more heavily on energy importers and vulnerable economies.

The AI buildout is also contributing to inflationary pressure because of the scale of spending and the industry's large energy requirements.

"The AI building boom is inflationary," Georgieva said, while also pointing to energy and food shocks, tariffs, defense spending and high public debt as potential sources of price pressure.

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