Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has warned that the rapid adoption of artificial intelligence (AI) is threatening entry-level jobs, potentially making it increasingly difficult for young graduates and first-time jobseekers to secure employment.
Describing the growing influence of AI as a “slow-moving tsunami, but a tsunami nonetheless,” Ms Georgieva cautioned that technological advancements could significantly disrupt labour markets, particularly in advanced economies where businesses are increasingly automating routine tasks.
Speaking during a panel discussion on “Small AI: More and Better Jobs” at the ongoing IMF–World Bank Annual Meetings, the IMF Managing Director said AI could augment, downgrade or eliminate jobs, affecting approximately 40% of employment globally.
She explained that developing countries are expected to experience relatively lower direct exposure, with slightly more than 20% of jobs potentially affected.
However, she warned that the consequences could still be significant, particularly for young people seeking their first employment opportunities.
According to Ms Georgieva, the growing deployment of AI in advanced economies is reducing demand for workers performing routine and repetitive tasks.
These roles, she explained, have traditionally provided an important entry point into the labour market for recent graduates and young people with limited professional experience.
The disappearance of such opportunities could therefore create additional barriers for young jobseekers, making the transition from education to employment increasingly difficult.
The IMF Managing Director also raised concerns about the changing structure of employment, observing that AI-driven disruptions could push some workers towards lower-paying jobs in sectors such as construction and services.
She stressed that governments must move beyond general discussions about AI and undertake detailed assessments of how the technology is affecting their respective labour markets.
According to her, country-specific research is essential to understanding which occupations are most exposed, the nature of the disruption and the policy responses required to protect workers.
Ms Georgieva maintained that the impact of AI would vary across economies, making it necessary for governments to develop responses that reflect their individual economic structures and employment conditions.
Her warning highlights a growing challenge for policymakers: how to harness the productivity benefits of artificial intelligence without undermining the entry-level employment opportunities on which millions of young people depend to begin their working lives.
