The International Monetary Fund (IMF) has cautioned that artificial intelligence (AI) poses a “slow-moving tsunami” threat to the global labour market, prompting calls from the World Bank jobs council for urgent “crisis-era” support measures.

IMF Chief Kristalina Georgieva warned on Monday that the rise of AI technology is impacting job markets globally, with young workers entering the job market identified as the most exposed to its transformative effects.

AI is hitting the global labour market like a “slow-moving tsunami,” IMF Chief Kristalina Georgieva warned, with young workers entering the job market the most exposed.

The World Bank jobs council reinforced this sentiment, urging policymakers to implement robust support mechanisms akin to those deployed during past economic crises to mitigate the potential disruption.

Young Workers Most Vulnerable to AI Disruption

The warning from the global financial institutions underscores growing concerns among economists and policymakers about the future of work as AI capabilities expand rapidly. While AI is expected to boost productivity and create new opportunities, it also risks displacing a significant number of existing jobs, particularly those involving routine or predictable tasks.

Discussions around AI's impact on employment have intensified over the past year, with various reports suggesting that millions of jobs could be automated. The IMF's specific focus on young workers highlights the challenge of ensuring new entrants to the workforce are equipped with the necessary skills for an evolving economy.

Calls for 'Crisis-Era' Policy Response

The recommendation for “crisis-era” support measures suggests a need for substantial government intervention and investment in education, retraining programmes, and social safety nets. Such policies would aim to cushion the blow for workers whose jobs are automated and help them transition into new roles.

Previous economic shocks, such as the 2008 financial crisis, saw governments implement wide-ranging stimulus packages and unemployment benefits. The World Bank council's call indicates that the potential scale of AI-driven job disruption may necessitate a similar level of coordinated, proactive policy response.

Policymakers globally are now tasked with balancing the economic benefits of AI adoption with the imperative to protect livelihoods and foster inclusive growth in an increasingly automated world.