Artificial intelligence investment is helping keep global economic growth near 3% despite an energy shock, but the technology could eventually affect about 40% of jobs worldwide and put young workers under particular pressure, IMF Managing Director Kristalina Georgieva said in Bangkok.
Georgieva spoke Monday at the opening of the International Monetary Fund and World Bank annual meetings, which continue through October 18 in the Thai capital. According to Decrypt, she described AI as a “slow-moving tsunami” whose effects will spread gradually across economies and labor markets.
The IMF is due to publish its full World Economic Outlook at 9 a.m. Bangkok time on October 13. The report will be the first update to the Fund’s 3% global growth forecast since its July release.
AI spending supports growth as energy shock weighs
The current AI boom is supporting economic activity through spending on computing equipment, related technology and infrastructure. Georgieva said this investment is helping the global economy maintain growth of roughly 3% a year while higher energy costs weigh on many countries.
The strongest immediate gains are concentrated in Asian economies that manufacture the hardware required for AI systems. Georgieva said wider AI adoption could add between 0.5 and 1 percentage point a year to growth in advanced economies, and between 0.2 and 0.8 percentage point in emerging economies. A percentage point represents the difference between two growth rates: for example, an economy growing at 2% would grow at 3% after a one-percentage-point increase.
She said the upper end of that range would more than offset the drag from aging populations across the region. The IMF’s July update found that Taiwan, South Korea, Thailand and Malaysia—the four largest net exporters of AI hardware—exceeded the Fund’s first-quarter growth forecasts by an average of 4.4% on an annualized basis.
South Korea provided the clearest example in the IMF’s figures. Its economy grew at a 7.5% annualized pace in the first quarter, compared with the 1.8% pace the Fund had projected in April.
Georgieva said in a speech in Singapore last week that AI hardware and associated technology products now account for more than a tenth of global goods trade. She also said AI investment as a share of the world economy is likely to exceed the investment made to build railroads or electricity grids.
The benefits, however, are not being spread evenly. Countries outside the AI hardware supply chain are receiving less of the initial boost, while the IMF’s July forecast put global growth at 3% in 2026, down from 3.5% in 2025. The Fund attributed the weaker outlook in part to an energy shock caused by the war in the Middle East.
Young workers face early pressure
Georgieva said the IMF expects AI eventually to affect around 40% of jobs globally, including roles that could be downgraded or eliminated. The estimated exposure rises to roughly 60% in advanced economies and stands at about 23% in low-income countries.
She cautioned that the lower figure for poorer countries does not necessarily mean those labor markets are safer. It mainly reflects the fact that AI has not yet reached as many workplaces there.
Young people entering the workforce could feel the effects first because AI is increasingly capable of handling routine tasks commonly assigned to entry-level employees. Singapore President Tharman Shanmugaratnam, who appeared on the same panel, said demand for graduates’ first jobs is already declining.
The shift could also deepen the divide between richer and developing economies if governments do not respond, Shanmugaratnam warned. The issue is not limited to the number of jobs available: it also concerns how workers gain the experience and skills traditionally acquired in early-career roles.
Public finances and market risks
Georgieva said AI could put pressure on government budgets if income moves away from workers and toward owners of capital. Because governments rely heavily on taxes linked to labor income, such a shift could reduce part of the tax base used to finance public services.
World Bank President Ajay Banga said the bank is supporting “small AI” tools that do not depend on large language models. These systems are intended for uses including farming, clinics and classrooms in emerging markets.
Georgieva has also warned that the construction of AI capacity is contributing to inflation. In addition, she said disappointing earnings could spread through financial markets because major AI companies have borrowed heavily to finance the expansion.
The IMF’s forthcoming outlook will show whether the Fund changes its 3% global growth projection and how it assesses the balance between AI’s economic benefits and its risks for workers, public finances and markets.
Moneyiar market picture
Moneyiar data at 09:53-09:54 on October 13, 2026, showed mixed performance among the listed digital assets:
- NEAR Protocol (NEAR) was trading at $5.1057637229, down 11.74% over 24 hours and 2.89% over seven days.
- Sun [New] (SUN) stood at $0.0164930748, down 2.26% in 24 hours and 3.62% over seven days.
- AKEDO (AKE) was at $0.0245190684, up 1.85% over 24 hours but down 19.5% over seven days.
- USD.AI (CHIP) traded at $0.0585846191, down 8.88% over 24 hours while remaining up 10.57% over seven days.
These figures describe the market at the stated times and do not indicate how AI-related economic developments will affect any particular asset.
