IMF Chief: AI a 'Slow Tsunami' Threatening Jobs, Taxes

At the IMF and World Bank annual meetings in Bangkok, IMF managing director Kristalina Georgieva called artificial intelligence "a slow tsunami" that threatens global labour markets and government tax revenues.

She warned policymakers worldwide must rapidly review the structure of education systems so societies can adapt to the wave of technological change. The remarks came during the meetings in Bangkok as Georgieva outlined risks and policy priorities.

Georgieva said: "This phenomenon is a slow tsunami; but nevertheless, it is, without doubt, a tsunami."

New automation technologies are already taking on routine and repetitive tasks, sharply reducing companies' demand for human labour across sectors. The current trend is steering workers toward lower-paid roles such as construction labour, a shift experts consider worrying.

The structural change in labour markets is putting public revenues under severe pressure by shifting income from wages to capital.

Young workers in technology-related fields are now facing a noticeable drop in hiring opportunities, and new entrants are increasingly vulnerable. Concern over widening inequality has risen because the gains from the large investment cycle are concentrated among a narrow set of specialists.

She added: "Today we cannot precisely imagine what the world of work will be in five years; but we can be disciplined, assess events carefully, learn, and, more importantly, act now."

Economic estimates

Georgieva said the spread of AI, alongside employment challenges, can also be a positive driver for the broader economy. Financial estimates indicate that deploying intelligent tools could add about one percent to growth in advanced Asian economies and could offset the negative effects of population ageing in developed economies.