- 40% of the global workforce, especially entry-level jobs, will be impacted by AI disruptions
- AI impact may reach 60% in advanced economies and 26% in India, per IMF-backed studies
- India must focus on education reforms to prepare workers for AI and flexible skill deployment
An estimated 40 per cent of the global workforce – entry-level jobs in particular – will be impacted by Artificial Intelligence and AI-based technological disruptions, IMF chief Kristalina Georgieva warned NDTV Friday, comparing the era-defining shift as a "tsunami hitting labour markets".
Referring to International Monetary Fund-backed studies, she said this number could shoot up to 60 per cent in advanced economies but will likely settle at 26 per cent for India.
These figures, Georgieva indicated, underline the importance of policymaking to prepare populations for the AI economy. This includes learning specific skills, but also learning to be more flexible in deploying these skills, to guard against the risk of people being left behind.
"Who gets squeezed? The category of jobs we worry particularly about, and there is evidence this is already happening, are entry-level roles. These are usually tasks that can be easily automated… and what does this mean for young graduates looking for their first jobs?"
"… our conclusion is we are falling behind (in) the demand of transformation that comes with AI, in terms of appropriate policies to prepare people for what is already here today," she said.
As the world's most populous country, India already has an enormous workforce that millions more join every year; between 2024 and 2023, for example, that number was 19.01 million.
That places significant stress on federal and state governments to create jobs, stress that could now be exacerbated by the onrushing 'tsunami' of Artificial Intelligence and AI-based tech.
But handled correctly, adoption of AI and AI tech could boost India's GDP by 0.7 per cent annually, she said, bringing the country closer to long-term growth goals.
The IMF chief – one of several high-profile business leaders, innovators, and policymakers at this week's India AI Impact Summit – said the gathering addressed important issues in this regard and praised Prime Minister Narendra Modi for working towards democratisation of AI.
Impact on India?
"When I look at the Indian economy, what bodes well is that you have undertaken deep structural reforms in tax… in labour markets… to make India more competitive, more prepared for this world of AI, in which there has to be flexibility in how you deploy skills," Georgieva said.
The IMF chief also praised the country's banking and corporate sectors, both of which she called "sound" and said had created an environment that encourages investment. Recently announced trade and tariff deals with the UK, US, and European Union were also praised.
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As a result of these reforms and trade deals, Georgieva said, the economy has been integrated into global supply chains. India joining the Pax Silica – a US -led strategic alliance to secure global AI and semiconductor supply chains and reduce dependence on non-aligned nations.
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"… that is how you buffer against risk… when you have high growth then, all other things (being) equal, you have more jobs, even if it is on a reduced rate (of) one per cent growth then you still have job creation. When you are integrated into the world you have a much better chance to withstand the impact of AI transformation," she explained.
The key, the IMF head said, is India is "creating opportunities" across the board. "Public digital infrastructure, digital ID… this is so beneficial. As an outsider I look at India today and the India I visited 10-15 years ago… it is a different country, dynamic, open for economic opportunities."
Focus on education
The key, she said, is that focus must now be on the education sector.
"… the government needs to think about reforming education for the AI economy. That is, not so much learning specific skills but learning to learn and be more flexible in deploying these skills… be more open but also recognise that with AI the world of services is going to expand."
This, she suggested, could be critical in helping to offset potential job losses, particularly the entry-level roles. What will also be critical is cooperation, she said, between countries.
"We are not helpless… we can have policies that help us adjust to the world of AI but it is not going to happen unless we concentrate and work together… to learn from each other."
