The International Monetary Fund (IMF) has warned that artificial intelligence (AI) could transform about 40 per cent of jobs worldwide, raising concerns about the future of employment, particularly for young people and workers in developing economies such as Nigeria.
Key Highlights
- The IMF says AI could transform about 40 per cent of jobs worldwide, although this does not mean all affected jobs will disappear.
- Young graduates and workers seeking entry-level positions could face challenges as AI reshapes labour-market demands.
- Nigeria may need to strengthen digital education, vocational training and workforce development to prepare workers for AI-driven changes.
- The World Bank Group has urged governments to prioritise job creation as about 1.2 billion young people are expected to turn 18 over the next 15 years.
- AI could boost productivity in agriculture, healthcare, manufacturing and other sectors, provided developing countries invest in infrastructure and skills.
IMF Warns AI Could Reshape Global Employment
The IMF said AI could improve productivity and create new economic opportunities but warned that it could also downgrade existing jobs, eliminate some roles and widen economic inequalities if governments fail to prepare their workforces for technological change.
The warning was issued by IMF Managing Director Kristalina Georgieva on Monday during the 2026 annual meetings of the IMF and World Bank Group in Bangkok, Thailand.
Speaking at a World Bank Group session titled “Small AI: More and Better Jobs,” Georgieva clarified that the projection did not mean 40 per cent of jobs would disappear. Rather, it reflected AI’s potential to change the nature and structure of work across occupations and countries.
The warning comes as governments and businesses increasingly adopt AI-powered technologies, prompting questions about how workers, particularly young graduates seeking entry-level employment, will adapt to changing labour-market demands.
For Nigeria, where creating sufficient employment opportunities for young people remains a major economic challenge, the IMF’s assessment highlights the need to strengthen digital skills, vocational education and workforce development to prevent technological disruption from deepening existing inequalities.
AI Skills Demand Rises as Entry-Level Jobs Face Pressure
Georgieva said early evidence from the United States showed that demand for workers with AI-related skills was increasing, even as opportunities in some routine and repetitive occupations declined.
However, she noted that much of the employment growth observed in the area studied was concentrated in lower-paying jobs, raising concerns about the quality of employment emerging alongside AI adoption.
The IMF chief warned that young people entering the labour market could face particular difficulties because entry-level positions often provide the experience and professional training needed to progress into better-paid roles.
A decline in such opportunities, she said, could make it harder for graduates and other young workers to gain the experience required to build sustainable careers.
Georgieva called for more research into labour-market developments to help governments understand how AI was affecting employment and develop policies to manage the transition.
She also emphasised the importance of lifelong learning, noting that workers would increasingly need to update their skills as technological advances changed the requirements of different occupations.
Nigeria Urged to Invest in Digital Skills and Vocational Training
For Nigeria, adapting to AI-driven changes could require greater investment in digital education, technical and vocational training, and professional development programmes that reflect employers’ changing needs.
Businesses, educational institutions and policymakers would also need to identify emerging skills gaps and ensure workers could access training for jobs created or reshaped by AI.
Such measures could help young Nigerians develop skills relevant to emerging industries while improving their ability to compete in an increasingly technology-driven economy.
Reliable electricity, digital connectivity and access to advanced technical training will also influence how effectively Nigerian businesses and workers can adopt AI tools.
Without adequate preparation, the benefits of AI adoption could be unevenly distributed, potentially widening the gap between workers with access to relevant skills and those whose jobs are more vulnerable to technological change.
IMF Warns AI Could Affect Government Tax Revenue
Beyond employment, Georgieva warned that widespread AI adoption could affect government finances if technological changes shifted economic activity away from labour towards capital.
Such a shift could weaken traditional sources of tax revenue, potentially creating additional challenges for governments seeking to fund public services and development programmes.
Despite the risks, the IMF chief said AI could support economic growth, particularly in developing economies that invest in the infrastructure and skills needed to deploy the technology effectively.
The IMF estimates that AI could add between 0.5 and one percentage point to growth in advanced Asian economies, and between 0.2 and 0.8 percentage points in emerging Asian economies.
However, Georgieva cautioned that developing countries would need reliable electricity, digital infrastructure, relevant skills and safeguards against misuse to realise AI’s economic benefits.
These requirements are particularly significant for Nigeria, where improvements in power supply, digital access and technical education could help businesses and workers benefit from AI-driven innovation.
Read also:
- Oyedele Arrives Bangkok With Nigeria’s Delegation to IMF/World Bank Meetings
- Tinubu Backs Google Partnership Targeting One Million Digital Jobs in Nigeria
- IMF lifts Nigeria’s 2026 growth outlook to 4.4%, signals economic turnaround as reforms gain ground
World Bank Calls for Job Creation as Youth Population Grows
World Bank Group President Ajay Banga also warned that the scale of the global employment challenge required governments to make job creation a central priority in economic development policies.
Banga said approximately 1.2 billion young people were expected to reach the age of 18 over the next 15 years, underscoring the need for developing economies to generate sufficient productive employment.
He noted that the private sector accounts for between 75 and 85 per cent of employment in countries, making private investment and policies that reduce business risks essential to expanding job opportunities.
According to Banga, governments must provide the infrastructure and policy environment needed to attract investment, while businesses remain central to generating employment.
His remarks highlight the importance of combining technology adoption with policies that support business growth and expand access to productive jobs.
Smaller AI Applications Could Benefit Developing Economies
Banga argued that smaller, locally relevant AI applications could help developing economies improve productivity without relying exclusively on the large-scale AI models attracting attention in advanced economies.
He identified infrastructure, agriculture, primary healthcare, tourism and manufacturing as sectors where AI-powered tools could improve productivity while supporting employment.
Examples include healthcare workers using AI applications to assess patients and connect them with remote doctors, as well as farmers using mobile technology to identify crop diseases and access information about agricultural inputs, credit and markets.
Such applications, he said, could help workers and small businesses overcome barriers to technical expertise, technology and market access.
For Nigeria, the challenge will be to ensure that AI adoption improves productivity while supporting job creation, equipping young people with relevant skills and expanding opportunities across key sectors of the economy.
For more business and economy updates, follow us on X.
