The International Monetary Fund (IMF) Managing Director, Kristalina Georgieva, warned policymakers not to underestimate growing public concerns about artificial intelligence’s impact on jobs.
Speaking on Bloomberg’s Leaders with Francine Lacqua podcast earlier this week, Georgieva said world leaders must pay closer attention to who benefits from AI and who does not, rather than focusing solely on productivity gains and economic growth.
She compared the rapid rise of AI to globalization, which boosted overall economic output but left many communities struggling after jobs disappeared. Georgieva said policymakers should ensure the benefits of AI are shared broadly to avoid a similar backlash.
“We collectively did not appreciate the backlash against globalization,” Georgieva said. She argued that while economies benefited overall, many communities were hollowed out when jobs disappeared and insufficient attention was paid to displaced workers.
AI And Jobs
Georgieva’s latest warning builds on concerns she has raised repeatedly this year about AI’s effect on labor markets.
Speaking at the World Economic Forum in January, she described AI as a “tsunami” that could reshape employment worldwide. She said AI could affect roughly 60% of jobs in advanced economies and about 40% of jobs globally, while warning that younger workers and middle-class employees could face the greatest disruption.
She has also argued that AI presents both opportunities and risks. At an AI summit earlier this year, Georgieva said the technology could boost global economic growth while simultaneously displacing workers and requiring governments to adapt.
The IMF has raised concerns beyond employment as well. In May, the organization warned that AI-powered cyberattacks could pose growing risks to financial stability by making it easier and cheaper for attackers to identify and exploit vulnerabilities in critical systems.
Debate Over AI’s Impact
Georgieva’s comments come as debate intensifies over whether AI will ultimately destroy jobs or create new opportunities.
Earlier this month, Apollo Global Management (NYSE:APO) Chief Economist Torsten Sløk said there was “zero evidence” that AI was causing widespread job losses across the U.S. economy. He argued that companies are hiring AI specialists, while investment in data centers, semiconductors and related infrastructure is supporting employment growth.
Former White House AI and Crypto Czar David Sacks recently made a similar argument, saying the AI infrastructure boom is generating strong demand for electricians, fiber technicians and other skilled trades workers needed to build and maintain data centers. He pointed to Meta Platforms’ new workforce training initiative as evidence that AI is creating employment opportunities alongside automation.
Others remain more cautious. Sen. Bernie Sanders (I-Vt.) warned this week that AI and robotics could eliminate millions of jobs and criticized Congress for failing to prepare for the economic consequences of large-scale technological disruption. Sen. Mark Kelly (D-Ariz.) has also argued that policymakers must ensure workers are not left behind as AI reshapes the economy.
Georgieva warned that failing to share AI’s benefits broadly could trigger public backlash.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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