2024

World

Generative AI

Bank

Has it ever crossed your mind that you might lose your job to artificial intelligence someday? If yes, you’re not alone; it has been a global anxiety since the advent of the AI economic boom. The International Monetary Fund (IMF) has again warned that the technology could soon disrupt 40% of global jobs.
At the opening of the ongoing October 2026 International Monetary Fund and World Bank annual meetings in Bangkok earlier today, IMF Managing Director <a href="https://www.linkedin.com/in/kristalina-georgieva" rel="noopener noreferrer nofollow">Kristalina Georgieva</a> described the technology as “a slow-moving tsunami” guaranteed to structurally alter the workforce. Noting that she now receives daily automated briefings from her own <a href="https://technext24.com/interview/ai-democratisation-lagos-life-engineers/" rel="noopener noreferrer nofollow">AI assistant</a>, she warned, “It is a transformative technology. It so completely changes how we work and how we live.”
Her core message is that AI threatens to eventually augment, downgrade, or outright eliminate 40% of all jobs worldwide.
This is not a sudden pivot in institutional thinking. The MD is merely amplifying a stark reality first outlined in the IMF’s January 2024 staff analysis, titled ‘AI Will Transform the Global Economy’. Let’s Make Sure It Benefits Humanity. That seminal report detailed how almost 40% of global employment is exposed to AI disruption, with that figure spiking to a staggering 60% for advanced economies. We are already in the midst of this disruption. The Fund noted that 10% of jobs in the United States already demand active artificial intelligence proficiency.
<figure class="wp-block-image size-large"><img width="1600" height="900" src="https://technext24.com/wp-content/uploads/2026/10/6-imf-md-on-india-growth.jpg" alt="IMF Managing Director Kristalina Georgieva">
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 IMF Managing Director Kristalina Georgieva
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Relying strictly on IMF projections actually obscures the breadth of the impending crisis. Independent analyses from Wall Street and global consultancies repeatedly validate these grim metrics.
Goldman Sachs Research estimates that 300 million jobs globally are exposed to automation by artificial intelligence. While the investment bank maintains that automation does not automatically equal immediate job elimination, it explicitly warns that artificial intelligence-related headwinds have been strongest among entry-level workers. Across major developed economies, employment growth in AI-exposed industries like information and communication services has already noticeably slowed since 2022.
The International Labour Organisation paints an equally concerning picture for the broader global workforce. A joint study from the ILO and Poland’s National Research Institute places roughly one-quarter of global employment in occupations with direct exposure to generative AI. The ILO warns that developing countries risk experiencing massive labour market disruption long before they see any tangible productivity benefits, lacking the digital connectivity and social protection systems required to cushion the blow.
Similarly, the McKinsey Global Institute offers a sobering timeline. Their research projects that by 2030, activities accounting for up to 30% of hours currently worked across the US economy could be automated. Generative AI is accelerating this trend, moving the threat beyond physical labour and directly into cognitive tasks. The World Economic Forum echoes this scale of transformation. The WEF estimates that within just four years, the global transformation of the labour market could create 170 million new jobs while displacing around 92 million.
<h4 id="ai-is-eliminating-the-entry-level-jobs" class="wp-block-heading">AI is eliminating the entry-level jobs</h4>
The grand paradox of the artificial intelligence era is that the disruption actively masquerades as economic salvation. Georgieva noted that the technology has already triggered a massive “demand shock and an investment shock,” with billions of dollars currently flowing into physical infrastructure like massive data centres and advanced microchips.&nbsp;
<figure class="wp-block-image size-large"><img width="1200" height="650" src="https://technext24.com/wp-content/uploads/2026/10/Untitled-design-90.png" alt="The artificial intelligence democratisation myth: Aminat Shotade on the missing infrastructure and what everyday people need to build with AI">
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This capital surge is single-handedly keeping global GDP growth afloat at approximately 3%. Asian manufacturing hubs are reaping a short-term windfall from supplying the hardware required for AI development. Yet this technology-driven investment creates an illusion of widespread prosperity. Capital is surging, but human labour is being actively hollowed out underneath.
This hollowing out is particularly severe at the bottom of the corporate ladder. Speaking alongside the IMF chief, Singaporean President Tharman Shanmugaratnam delivered a sharp warning regarding the death of the entry-level job. Automated workflows are aggressively wiping out junior roles, leaving recent graduates stranded with no viable pathway to gain the professional experience necessary to move up. The middle class is being systematically squeezed, with dislocated workers forced downward into lower-paying physical sectors like basic construction or server maintenance.
This shift presents a devastating mechanical problem for modern governance. As economic value rapidly migrates away from human labour and consolidates within capital and corporate software, government tax revenues face an imminent collapse. Decades of public infrastructure, healthcare systems, and social safety nets have been built almost entirely on the taxation of salaried workers. When automated systems absorb routine white-collar tasks, corporate profitability skyrockets but income tax receipts plummet.
State treasuries will inevitably starve just as displaced workers require unprecedented public support. Governments will be forced into an uncomfortable corner, requiring them to completely reimagine how they tax corporate productivity to avoid a fiscal death spiral.
<figure class="wp-block-image size-large"><img width="800" height="400" src="https://technext24.com/wp-content/uploads/2023/02/layoff.png" alt="Meta to axe 8,000 jobs in May as AI-induced restructuring sweeps across global tech&nbsp;">
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 Job loss
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Global financial institutions are scrambling for a compromise. World Bank President Ajay Banga used the Bangkok meetings to champion the concept of “small AI” to salvage developing economies. Instead of relying on massively expensive large language models, Banga argued for targeted, smaller-scale applications designed to boost productivity in agriculture and primary healthcare. This strategy aims to generate practical value without requiring exorbitant infrastructure investments.
But small AI in itself cannot single-handedly plug a 40% hole in the global labour market. The AI investment boom is currently offsetting the drag of energy supply shocks and ageing populations, but it is doing so by fundamentally cannibalising the workforce.
The global economy is running on borrowed time. When GDP expands while paycheques evaporate, the metrics of growth cease to measure human prosperity but merely disguise its erosion. If capital captures every dollar of AI-driven productivity while workers absorb the full blow of displacement, the technology propping up today’s balance sheets will inevitably destroy the consumers needed to fund tomorrow’s economy.

Despite AI’s contribution to global GDP, the IMF Chief warns it threatens 40% of global jobs

Technext.ng

Other articles published on Oct 12, 2026

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