AI can lift global growth, but risks displacing jobs: IMF chief Kristalina Georgieva

Georgieva said artificial intelligence can lift global growth by 0.8 per cent, and India's goal of becoming a Viksit Bharat or a developed nation is achievable.

New Delhi: International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Friday said Artificial Intelligence (AI) has the potential to lift global growth by around 0.8 percentage points, but she cautioned about the risks of displacement of jobs and threats to financial stability.

Participating in the AI Impact Summit, 2026, she said AI could accelerate global economic growth and help India move closer to its “Viksit Bharat” aspirations.

“AI can lift up global growth by almost a percentage point. We say 0.8%. It would mean that the world would grow faster than it did before the COVID pandemic. And that is fantastic for creating more opportunities, more jobs. This is the magnitude that we see for India, and it would mean that India’s Viksit Bharat is achievable,” Georgieva said.

She observed that India may be relatively well-positioned given its investment in digital public infrastructure and its young population, which tends to be more open to technology adoption and innovation.

Cautioning about the negative impact of AI on the labour market, Georgieva said, “We calculated this risk as very high. We actually see the impact of AI on the labour market like a tsunami hitting it. Globally, 40% of jobs will be affected by AI, some enhanced, others eliminated. In emerging markets 40%, but in advanced economies, 60%. And that is happening over a relatively short period of time.”

She said the IMF will continue to work with countries to understand what is happening in AI and then how to project it for policies for the future.

She also flagged financial stability concerns arising from rapid technological shifts.

Despite these concerns, the IMF chief struck an optimistic tone, stressing that AI’s impact would be positive on employment. However, it could lead to few people getting some jobs and a large swathe of the population getting low-paid work.

“What concerns us the most is that jobs that disappear tend to be entry-level ones. They are routine and they are easily automated. So if you are in this place of the labour market, that is easily automated, of course, that creates a risk for you,” she said.

To address AI advancement, she said there is a need to revamp the education system for a new world.

She also stressed the need for robust support systems, social protection, and an enabling environment to help workers navigate the dramatic changes in the labour market.

International Monetary Fund (IMF) Managing Director Kristalina Georgieva (in pink jacket) during a visit to Humayun’s Tomb in New Delhi earlier this week.