US, China and India are world’s top AI producers, but 40% of jobs could be affected, warns IMF

IMF chief Kristalina Georgieva says investments in artificial intelligence are supporting global economic growth, but the technology could change, downgrade or eliminate millions of jobs worldwide.

Artificial intelligence (AI) is bringing big investments and new opportunities to the global economy, but it is also raising serious questions about the future of jobs. International Monetary Fund (IMF) Managing Director Kristalina Georgieva has identified the United States, China and India as the three most important AI producers, saying investments in the technology are helping keep global economic growth at around 3 per cent.

Speaking during the IMF and World Bank Annual Meetings in Bangkok on Monday, October 12, Georgieva warned that the same technology driving economic growth could significantly disrupt employment. According to remarks reported by FXStreet, she estimated that AI could eventually lead to 40 per cent of jobs being improved, downgraded or eliminated. The impact is already becoming visible in advanced economies.

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AI investments are supporting global economic growth

Georgieva described the rapid expansion of AI as both a demand shock and an investment shock. Companies are spending heavily on AI infrastructure, computing resources and related technologies, creating fresh demand across several industries.

The benefits are expected to extend beyond the countries developing AI systems. According to Georgieva, AI could increase economic growth in advanced Asian economies by 0.5 to 1 percentage point. Emerging Asian economies could see gains ranging from 0.2 to 0.8 percentage points.

This could benefit countries involved in manufacturing chips, electronic components and other equipment required to operate AI systems.

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What happens to the 40% of jobs affected by AI?

The employment warning is perhaps the bigger concern. Georgieva said AI could lead to jobs being “augmented, downgraded or eliminated.”

This does not mean 40 per cent of workers will lose their jobs. Some employees could become more productive using AI tools. Others may see their responsibilities reduced as software takes over tasks previously handled by people.

The IMF’s earlier research found that around 60 per cent of jobs in advanced economies could be exposed to AI, compared with 40 per cent in emerging markets and 26 per cent in low-income countries.

Georgieva expressed particular concern about young people entering the workforce, especially those seeking jobs involving routine and repetitive tasks.