IMF's Georgieva warns AI is a 'slow-moving tsunami' for jobs and taxes

Georgieva's remarks came during her first appearance at the annual meetings of the IMF and World Bank in Bangkok, where she spoke at a session on AI's impact on employment. She framed the shift as one with far-reaching consequences for public finances, pointing to the risk that AI tilts the economy toward capital and away from labor.

She also noted that young workers in AI-exposed fields have already seen a slowdown in hiring, leaving new entry-level applicants far more vulnerable, and that concern is growing the technology will widen inequality, with gains so far concentrated among a narrow set of workers and economies despite a global investment super-cycle.

She acknowledged that the world of work five years from now cannot be imagined today, but said policymakers can be disciplined, carefully assess what is happening, draw lessons and, most importantly, act on them now. Against the employment headwinds, she said the technology can ultimately prove a positive for growth overall, citing the IMF's estimate that its spread can add up to a percentage point to growth in advanced Asian economies.