International Monetary Fund (IMF) Managing Director Kristalina Georgieva has warned that artificial intelligence could reshape global labour markets, widen economic inequalities and challenge government tax systems. Speaking at the IMF and World Bank annual meetings in Bangkok on October 12, 2026, Georgieva described AI as a ‘slow-moving tsunami.’
The IMF estimates that AI could affect around 40% of jobs worldwide over time, with roles potentially enhanced, downgraded or eliminated as businesses adopt the technology. The impact could vary considerably across economies, depending on their workforce skills, technological readiness and ability to adapt.
AI Boom Supports Growth but Raises Economic Risks
Georgieva also highlighted the economic benefits of AI investment. Strong spending on AI infrastructure is helping sustain global economic growth at around 3%, despite pressure from energy supply disruptions. IMF estimates that AI investment could lift growth in advanced Asian economies by 0.5 to 1 percentage point and in emerging Asian economies by 0.2 to 0.8 percentage points.
However, the benefits may not reach all workers and economies equally. Singapore President Tharman Shanmugaratnam warned at the Bangkok meetings that AI adoption was weakening demand for fresh graduates in some exposed sectors. He urged governments to address the decline in entry-level employment opportunities and prevent a widening gap between advanced and developing economies.
Tax Systems Face Pressure as AI Changes Employment
The growing use of AI could also challenge government finances. If businesses rely more heavily on automation and reduce their dependence on human labor, governments could face weaker revenue from employment-related taxes even as spending needs increase.
An IMF analysis highlighted the need to reassess tax systems and social protection policies as AI changes the distribution of income between workers and capital owners. Governments may need to strengthen tax administration, reconsider incentives that encourage excessive labour displacement and ensure that the gains from AI reach a wider section of society.
Also Read: Dating in the AI Era: Why Indian Singles are Checking Messages Before Hitting Send