IMF chief warns AI could hit jobs and erode tax revenue
Why it matters: The IMF says AI may shift income from labor to capital, squeezing a core source of government tax receipts.
International Monetary Fund Managing Director Kristalina Georgieva warned Monday that artificial intelligence is already cutting demand for some workers and could weaken government finances by reducing labor-based tax revenue. Speaking at the IMF and World Bank annual meetings in Bangkok, Georgieva said AI is taking over routine tasks, slowing hiring for young workers in AI-exposed fields and pushing more people toward lower-paid work such as construction. She urged policymakers to rethink education and move quickly to help workers adapt. Georgieva also said AI could still lift growth, with IMF estimates showing the technology may add as much as 1 percentage point to growth in advanced Asian economies.