Davos 2026: IMF Chief Warns AI Tsunami Could Hit Young Workers

At the World Economic Forum in Davos on January 23, IMF managing director Kristalina Georgieva warned that artificial intelligence is advancing faster than policymakers' ability to regulate it. She described AI as a “tsunami hitting the labour market” and stressed that without safeguards, the disruption could widen inequality. This is moving so fast, and yet we don’t know how to make it safe. We don’t know how to make it inclusive, she said."

IMF research indicates that 60% of jobs in advanced economies will be affected by AI in the coming years, through a mix of enhancement, elimination, or transformation, while about 40% of jobs globally could be impacted. The findings come as governments and businesses grapple with how to harness benefits while protecting workers from adverse effects.

Some workers are already seeing gains: around one in ten jobs in advanced economies has been enhanced by AI, often translating into higher pay and positive local spillovers for economies. However, entry-level roles—typically filled by younger workers—are among the most vulnerable to automation. “Tasks that are eliminated are usually what entry-level jobs do at present, so young people searching for jobs find it harder to get to a good placement,” she noted. Workers whose roles aren’t directly transformed by AI could still face wage pressure as productivity gains accrue to those who can effectively use the technology. Without broad gains in pay, the middle class may be affected and wages could stagnate.

Georgieva highlighted a regulation lag as a core risk: AI is advancing faster than policymakers’ ability to respond, and insufficient safeguards could worsen inequality. “This is moving so fast, and yet we don’t know how to make it safe. We don’t know how to make it inclusive,” she warned, underscoring the need for timely, thoughtful policy action that pairs innovation with protections for workers.

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