World Bank and IMF Sound the Alarm on AI’s Impact on Employment

During the annual meetings of the World Bank and the International Monetary Fund (IMF) in Bangkok, both institutions issued a stark warning. The question is no longer whether artificial intelligence (AI) will disrupt jobs, but how to mitigate its economic and social fallout.

The Most Vulnerable: Young Workers

The group most at risk is young people entering the labor market. Traditionally, these individuals start in routine, repetitive roles before climbing the career ladder. However, if these entry-level positions disappear, their professional trajectories could be severely compromised.

Governments are urgently called upon to implement supportive measures to facilitate youth employment. These interventions should no longer be viewed as exceptional or temporary responses, but rather integrated into broader structural policy frameworks. Key recommendations include:

• Strengthening public-private partnerships: The private sector already generates over 75% of all jobs.
• Incentivizing hiring: Encouraging companies to actively recruit recent graduates.

Exposure Varies by Economy

According to the IMF, AI-related job exposure is estimated at:

• ~60% in developed economies
• ~23% in low-income countries

The pressure is naturally most intense in technology-driven sectors.

A Window of Opportunity

The one silver lining is that AI-driven job displacement will occur task by task, not overnight. This gradual process provides policymakers with valuable time to respond.

To capitalize on this window, two critical actions are imperative:

1. Promote on-the-job learning: Enable employees to continuously upskill and adapt.
2. Reform higher education: Shift university curricula toward applied, practical training that aligns with evolving labor market needs.

The Path Forward: Elevating the Entire Ecosystem

The solution lies in upskilling the entire ecosystem toward high-value-added activities where human ingenuity and local expertise remain irreplaceable.

Warning: Without immediate and coordinated action, the economic and social costs will be extremely high.

The time to act is now.