Young will suffer most when AI ‘tsunami’ hits jobs, says head of IMF | AI (artificial intelligence)

https://www.theguardian.com/technology/2026/jan/23/ai-tsunami-labour-market-youth-employment-says-head-of-imf-davos

Publish Date: 2026-01-24 03:27:00

Certainly! Here is a summary of the article in an unordered list form, featuring between 4 and 8 key points:

AI’s Impact on Labor Market: IMF’s Kristalina Georgieva warns of a significant transformation in the labor market due to the advancing widespread use of artificial intelligence, likening it to a tsunami affecting 60% of job roles in advanced economies and 40% globally, either enhancing, eliminating, or transforming them.
Job Displacement and Inequality: The head of the IMF highlights that younger job seekers may find it harder to secure entry-level positions since many traditional entry-level roles are being eliminated, leading to unemployment and difficulty finding good placements for the youth.
Potential Pay Squeeze: Individuals whose jobs are not directly altered by AI could experience reduced wages without corresponding productivity boosts, negatively impacting the middle class and increasing global economic inequality.
Regulatory Concerns: Georgieva expresses concern that AI is progressing rapidly without sufficient regulations to ensure its safety and inclusivity, signaling a urgent need to catch up and regulate its rapid advancement.
Distribution of AI’s Productivity Gains: Christy Hoffman from the UNI global union emphasizes the need to manage the disruption caused by AI in a way that fairly distributes productivity gains across the economy, advocating for employers to discuss AI tools with workers before their introduction.
Cooperation and Trust Issues: European Central Bank President Christine Lagarde and other figures worry that the AI boom may be hindered by increasing mistrust between economies and potential trade barriers, exacerbating global inequality.
Global Economic Order Challenges: While Mark Carney sees a permanent rupture in the global economic order due to erratic US trade policy, Lagarde suggests instead framing the issue as one of needing alternatives and cooperative frameworks to manage AI and global economic interdependence.

These points encapsulate the primary themes and expert concerns surrounding the impact of AI on labor markets, economic inequality, and the need for regulatory frameworks at the World Economic Forum.