The International Monetary Fund (IMF) Managing Director, Kristalina Georgieva, has sounded the alarm about the potentially disruptive impact of artificial intelligence (AI) on the global workforce. Speaking at a conference in London, Georgieva predicted a coming “tsunami” of job losses, driven by the rapid advancement of AI technologies.

Georgieva’s warning highlights a growing concern among economists and policymakers about the potential for AI to displace workers across various sectors. According to recent IMF research, up to 40% of global employment could be vulnerable to automation and replacement by AI. This displacement could be particularly acute in advanced economies, where a higher proportion of jobs involve tasks that can be automated.

While AI holds the promise of increased productivity and economic growth, the potential for widespread job losses raises significant social and economic challenges. Georgieva emphasized the need for governments and businesses to proactively address these challenges by investing in education and training programs to equip workers with the skills needed for the jobs of the future.

However, the IMF’s analysis also suggests that AI could complement and enhance many jobs, leading to increased productivity and economic output. This dual nature of AI, both as a disruptor and an enabler, presents a complex landscape for policymakers and business leaders to navigate.

The debate around the impact of AI on employment is far from settled. Some experts argue that AI will create new jobs and opportunities, while others fear that it will exacerbate existing inequalities and lead to social unrest. The rapid pace of technological advancement in AI only adds to the uncertainty surrounding its long-term impact.

Georgieva’s warning serves as a reminder that the AI revolution is not just a technological shift but also a profound societal transformation. It calls for a thoughtful and proactive approach to ensure that the benefits of AI are broadly shared and its potential downsides are mitigated.