Davos 2026: IMF Chief warns of AI ‘tsunami’ hitting global jobs

Artificial intelligence is unleashing a “tsunami” across global labour markets, rapidly reshaping economies and forcing governments to rethink how they prepare workers for the future, International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned at the World Economic Forum (WEF) Annual Meeting 2026.

Speaking at a high-level dialogue hosted by the UAE at its pavilion in Davos, Georgieva said AI-driven disruption would create opportunities for some workers while displacing others, intensifying inequality if countries fail to act swiftly.

“A tsunami is hitting the labour market,” Georgieva said. “AI is quickly reshaping economies. Some roles grow; others disappear. We must invest in skills and prepare communities. The world as a whole is already experiencing the arrival of AI, but I do worry about the accordion of opportunities that are much more present in some places than in others.”

The session, titled The Great Rebalancing: Artificial Intelligence, Jobs, and the Future of Inclusive Growth, featured a fireside conversation between Georgieva and Badr Jafar, the UAE’s Special Envoy for Business and Philanthropy. Discussions focused on global economic resilience, labour-market disruption, and how countries can ensure AI-driven growth remains inclusive.

Despite heightened geopolitical and economic uncertainty, Georgieva said the global economy has shown unexpected resilience, with IMF growth projections upgraded for the period ahead. However, she cautioned that this stability should not breed complacency.

“Resilience should not be taken for granted,” she said, pointing to deep structural shifts driven by technology, geopolitics, climate change, and demographic change.

According to IMF estimates, around 40% of jobs globally will be significantly affected by AI, either enhanced, transformed, or displaced—underscoring the urgency of policy choices around education, reskilling, and digital infrastructure.

Georgieva outlined four critical enablers for resilient and inclusive growth: private-sector adaptability, responsible adoption of AI, sustained global trade flows, and sound fiscal policy. She stressed that public investment in education and access to AI tools would be decisive in determining which societies benefit from technological change.

Jafar highlighted the UAE’s long-term strategy of prioritising openness and global connectivity as a source of economic strength in an increasingly fragmented world.

“At a time when global systems are fragmenting, the UAE is doubling down on connection,” Jafar said. “We are known for open skies, open ports, and open minds — and the data shows the value of this approach.”

He noted that the UAE attracted more than $45 billion in foreign direct investment last year, a nearly 50% increase year-on-year, even as global FDI fell by 11%.

“We accounted for more than half of all investment flows into the Middle East, ranked second globally for new greenfield projects behind only the United States, and welcomed nearly 10,000 new millionaires, more than any other country worldwide,” Jafar said. “In an age of fragmentation, connectivity is a clear strategic advantage.”

Georgieva cited the UAE and the wider Gulf region as bright spots in the IMF’s global outlook, attributing their performance to regulatory reforms, sustained economic diversification, and long-term investment in human capital. Non-oil sectors now contribute more than 75% of the UAE’s GDP, she noted.

The discussion also called for rethinking growth models to balance economic efficiency with social equity, emphasising quality job creation, youth empowerment, and broader participation in opportunity. Participants highlighted the role of governments, businesses, and philanthropy in ensuring AI-driven productivity gains translate into inclusive and durable growth.

The dialogue formed part of the UAE Pavilion’s broader programme at Davos, reinforcing the country’s ambition to shape global conversations on artificial intelligence, inclusive growth, and the future of work.