Artificial intelligence is increasing pressure on labor markets as policymakers weigh its economic promise against the risk of job displacement. The International Monetary Fund says up to 40% of jobs worldwide could be affected, with governments urged to strengthen worker protections and skills training.
Highlights
- IMF warns up to 40% of global jobs could be disrupted by artificial intelligence, urging governments to shield workers from rapid technological change.
- Investment in reskilling and upskilling is highlighted as essential policy for enabling labor market adaptation to AI-driven automation across industries.
- IMF notes developing countries can benefit from AI-driven productivity gains if adoption is carefully managed, stressing timing and worker safeguards to limit employment pressures.
Labor market risks and policy response
As reported by Businessday, the International Monetary Fund warns that the rise of artificial intelligence could disrupt up to 40% of jobs globally while also creating room for stronger economic growth and new opportunities.The IMF says the technology presents a mixed outlook for employers and workers, especially as automation advances across industries. It urges governments and other stakeholders to take proactive steps to shield workers from the potential fallout of rapid technological change.
A central part of that response is investment in reskilling and upskilling so employees can adapt to changing workplace demands. The warning points to a need for labor and education policies that can help workers move into roles less exposed to displacement.
Implications for developing economies
The fund indicates that developing countries could also see benefits from AI if adoption is managed effectively, even as labor market risks remain significant. That makes policy timing important for economies trying to capture productivity gains without widening employment pressures.For business and government leaders, the message is that AI is becoming both a growth tool and a workforce risk that requires planning. The IMF's position suggests that countries that pair technology adoption with training and worker safeguards may be better placed to manage the transition.
Our earlier article on Kroger’s AI-driven restructuring outlined the grocer’s plan to overhaul its corporate structure over the next three years, including cuts affecting about a third of corporate roles. We noted that the move reflects a broader shift toward using AI and automation to reduce duplicative back-office work and boost efficiency, underscoring how productivity gains can coincide with fewer white-collar jobs.
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