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By Uche Usim
8The Fund noted that the wave is sweeping so quickly, threatening to upend millions of jobs as artificial intelligence (AI) and technology investment reshape economies faster than workers can adapt.
It added that while global growth appears stable on the surface, the apparent resilience is masking deep vulnerabilities, especially in employment.
In a recent blog, IMF economists, Pierre-Olivier Gourinchas and Tobias Adrian, said global growth is projected to hold at 3.3 per cent this year, slightly higher than earlier estimates.
Much of this improvement, however, is driven by the United States and China, fuelled largely by a surge in investment in information technology and AI.
However, the IMF noted that the tech-driven boom comes with risks. Investment and market optimism are becoming heavily concentrated in the technology sector, raising concerns about overvaluation, rising debt and what could happen if financial conditions tighten or returns disappoint.
“Trade disruptions and financial imbalances could build up negative growth effects over time,” the IMF economists warned, suggesting today’s growth could mask tomorrow’s instability.
Speaking at the World Economic Forum in Davos, IMF Managing Director, Kristalina Georgieva, described the impact of AI on jobs as a “tsunami” that even the most advanced economies are not fully prepared to handle.
“Even in the best prepared countries, I don’t think we are prepared enough,” Georgieva said, warning that AI is rapidly reshaping labour markets. IMF research shows that about 40 percent of jobs worldwide are already being affected, some positively, others at risk of displacement.
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“Some roles grow; others disappear. We must invest in skills and prepare communities,” she added.
A panel discussion in Davos featuring Brad Smith, Saudi Arabia’s Investment Minister Khalid Al-Falih and India’s Technology Minister, Ashwini Vaishnaw, amplified the need for urgent action.
Smith revealed that generative AI adoption remains uneven globally. About 25 percent of people in the global North use AI tools, compared with only 14 percent in the global South, a gap that continues to widen. He warned that AI will only help close global inequality if infrastructure, digital access, and skills training expand across developing regions.
The talent gap is already stark: for every one data scientist in Africa, there are roughly 14 in Europe.
Beyond jobs, the AI revolution carries hidden physical demands. Behind every chatbot and image generator are energy-hungry data centres, massive water-cooling systems, fragile semiconductor supply chains, and minerals extracted from the ground.
According to Thijs Van de Graaf, the race for AI dominance is also a race for electricity, land, water, chips and critical minerals.
“The contest in algorithms is just as much a competition for resources,” he noted.
