IMF Chief Warns AI Could Hit Labor Market Like “Tsunami”

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), has issued a stark warning about the disruptive potential of artificial intelligence (AI) on the global labor market, describing its impact as akin to a “tsunami.”

In an exclusive interview with CNBC anchors Karen Tso and Steve Sedgwick during the World Economic Forum in Davos, Georgieva called AI a “key driver of economic growth,” noting that it could boost global GDP by up to 0.8% in the coming years. However, she cautioned that the rapid adoption of AI technologies could reshape labor markets faster than most countries and companies are prepared for.

“What should governments and businesses do? They need to seriously consider which new skills will actually be required and how to enable workers to acquire them,” Georgieva emphasized.

Recent data from consulting firm Challenger, Gray & Christmas revealed that AI played a central role in the layoff of approximately 55,000 workers in the United States during 2025, with major companies explicitly citing AI adoption as a reason for workforce restructuring.

A broader picture emerges from Mercer’s 2026 Global Talent Trends Report, which found that 40% of employees worldwide fear losing their jobs to AI, up sharply from 28% in 2024, based on a survey of around 12,000 respondents.

Georgieva stressed that while AI presents significant economic opportunities, its societal and labor implications require urgent attention. “We are entering an era where AI can accelerate growth, but only if we simultaneously invest in reskilling workers to thrive in the new landscape,” she noted.

As AI technologies continue to penetrate industries from finance to manufacturing, experts say that the coming years will be critical for governments and businesses seeking to balance technological innovation with workforce stability.

This exclusive insight underscores the urgent need for global policymakers to rethink labor strategies, ensuring that workers are equipped to navigate an increasingly automated world.