IMF Warns: AI Threatens 40% of Jobs Worldwide

Investment in AI has sustained 3% growth in the global economy, but it also poses a serious threat to the labor market.

Investment in artificial intelligence has maintained the 3% growth of the world economy, but at the same time it is considered a serious threat to the labor market.

Become a special member of Arjan Ambassador in order to benefit from and access special facilities and different departments in Arjan Ambassador.

The managing director of the International Monetary Fund has warned of the implications of artificial intelligence for the future of the workforce, calling the technology a "quiet tsunami" that will soon take 40 percent of the world's jobs and put young workers in the first line of harm. However, "Kristalina Georgieva" emphasized at the annual meeting of this organization in Bangkok that the growth of artificial intelligence has also led to a 3% growth of the world economy in the middle of the energy crisis. According to the estimates of this organization, the boom in artificial intelligence hardware manufacturing in Asia will not only add up to 1 percentage point to the growth of advanced countries, but it can also curb the decline caused by the aging population of the region.

The International Monetary Fund report shows that the four main hubs of AI hardware exports in Asia, namely Taiwan, South Korea, Thailand and Malaysia, recorded an average growth of 4.4 percent higher than the initial forecasts. For example, South Korea's economic growth in the first quarter reached an impressive 7.5 percent, instead of the 1.8 percent estimate in April. In her speech last week in Singapore, Georgieva also mentioned that artificial intelligence hardware and related equipment now account for more than one-tenth of the world's merchandise trade, and that the share of investment in this area of GDP will soon exceed historical investments in the construction of the railway network or national electricity infrastructure.

However, the CEO of the International Monetary Fund has warned that the prosperity caused by this technology is mainly limited to this supply chain and most countries in the world are not benefiting from it. In addition, the increase in energy prices due to the war in the Middle East has caused this institution to reduce the global growth forecast for 2026 from 3.5% in 2025 to 3%.

On the other side of this equation are the worrying implications of new technology for the future of the workforce. Georgieva likened AI to a "slow-motion tsunami" that will eventually transform, downgrade, or eliminate about 40 percent of jobs worldwide. This effect is much deeper in advanced economies and reaches about 60% of jobs, while in low-income countries it remains at a level of approximately 23%. Of course, this lower figure in poor countries does not mean more job security, but is caused by the delay in entering and accessing this technology in those areas.

Young workers and graduates who are just entering the job market are the first victims of this wave; Because AI covers exactly the same routine and simple administrative tasks that basic job positions are defined on. During the same meeting, "Tharman Shanmugaratnam", the President of Singapore, reminded that the demand for the first job of graduates is already decreasing and warned that if governments delay in taking appropriate action, the gap between rich and developing countries will deepen.

In addition to the employment crisis, shifting a large portion of the income stream from workers to capitalists and big tech companies could undermine governments' primary tax sources and put public revenues under severe pressure. On the other hand, the skyrocketing costs of technology development and the heavy debts of large companies in this field have created an inflationary platform that may cause turmoil in the financial markets in case of a drop in profitability. In this situation, "Aji Banga", the president of the World Bank, announced that the institution has focused its attention on the development of "small artificial intelligence" tools; Systems independent of large language models designed specifically for the needs of emerging markets such as farmers, clinics and classrooms.

Along with labor challenges, artificial intelligence is considered a rare opportunity to manage Asia's demographic challenges. The statistics presented in the new book of the International Monetary Fund show that countries such as China, Japan and South Korea will lose nearly 25% of their active workforce by 2050 due to the aging of the population; A damage that the productivity growth of artificial intelligence technology has the ability to compensate.

"Krishna Srinivasan", director of the Asia Pacific Department of the International Monetary Fund, emphasized that policymakers should strike a balance between improving the capabilities of the workforce and fully automating jobs. According to him, although advanced economies are more prepared to take advantage of the opportunities in this area, the implementation of reform and skill training programs in emerging markets can accelerate the adoption of this technology by a decade.

My professional career in the world of technology goes back almost 10 years; The path that started with hardware, continued with software, and now continues as a technology reporter in Sefir Arjan. I am Javad and more than three decades have passed and in addition to the world of technology, I love movies and cinema, classic rock music and Real Madrid.