IMF's Georgieva Warns AI Could Hollow Out Jobs, Echoing Globalization Backlash

3 articles · Updated · Business Insider · Jun 9

Kristalina Georgieva urged world leaders not to dismiss public anxiety over AI, saying policymakers must address job losses rather than celebrate productivity gains alone.
On a Bloomberg podcast, the IMF chief said AI's rise resembles globalization, which lifted the world economy overall but left many communities hollowed out when jobs disappeared.
Her warning has sharpened as more companies announce layoffs while shifting spending toward AI, reinforcing concerns that workers already under pressure could bear the costs.
Georgieva had already likened AI's labor-market impact to a tsunami in February, warning that younger and middle-class workers could be squeezed even as demand rises in some services.

Sources

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Business Insider6d ago

IMF Chief Georgieva Warns Leaders Against Underestimating AI Job Backlash

The Economic Times2h ago

IMF: IMF chief says no global slowdown in sight yet, but risks are high - The Economic Times

Facebook6d ago

Artificial intelligence, or AI, is sending another tremor through the economy as organisations around the world continue to cut jobs and adopt AI to replace workers and reduce costs. But when workers

Will AI’s economic gains be widely shared, or will they concentrate wealth and power like globalization did?

As AI erases entry-level jobs, what new career pathways will emerge for the next generation?

AI’s Tsunami: IMF Predicts 60% Job Disruption in Advanced Economies and Rising Inequality Without Policy Reform

Overview

The International Monetary Fund warns that Artificial Intelligence is rapidly transforming global labor markets, bringing both great opportunities and serious risks. Policymakers are urged to act quickly to maximize AI’s benefits while controlling its dangers, as the middle class is expected to be significantly affected. The fast pace of AI development, combined with a lack of effective regulation, raises concerns about safety and inclusivity. The report highlights the urgent need for strong policies, ethical frameworks, and investment in education to ensure that AI-driven changes support economic growth without increasing inequality or leaving vulnerable groups behind.

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