IMF chief sounds alarm at Davos 2026 over AI and disruption to entry-level labour

AI has dominated discussions at the World Economic Forum in Davos, where IMF managing director Kristalina Georgieva warned that labour markets are already undergoing rapid structural disruption.

According to Georgieva, demand for skills is shifting unevenly, with productivity gains benefiting some workers while younger people and first-time job seekers face shrinking opportunities.

Entry-level roles are particularly exposed as AI systems absorb routine and clerical tasks traditionally used to gain workplace experience.

Georgieva described the effect on young workers as comparable to a labour-market tsunami, arguing that reduced access to foundational roles risks long-term scarring for an entire generation entering employment.

IMF research suggests AI could affect roughly 60 percent of jobs in advanced economies and 40 percent globally, with only about half of exposed workers likely to benefit.

For others, automation may lead to lower wages, slower hiring and intensified pressure on middle-income roles lacking AI-driven productivity gains.

At Davos 2026, Georgieva warned that the rapid, unregulated deployment of AI in advanced economies risks outpacing public policy responses.

Without clear guardrails and inclusive labour strategies, she argued that technological acceleration could deepen inequality rather than supporting broad-based economic resilience.

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