IMF Chief Sees AI Spillover Boosting Low-Wage Jobs, Warns of Middle-Class Squeeze

IMF Managing Director Kristalina Georgieva stated on January 24 that AI-driven productivity gains for high earners could increase demand for local service jobs, benefiting low-wage workers. She warned, however, that middle-class wages are stagnating and AI is rapidly eliminating entry-level tasks, creating a widening gap between winners and losers. Georgieva, speaking at the World Economic Forum in Davos, described AI as a "tsunami" potentially affecting 60% of jobs in advanced economies. She cited evidence that AI-skilled workers earn a 56% wage premium and that each new tech job can create 4.4 local service positions. The IMF recently upgraded its 2026 global growth forecast to 3.3% but cautioned that high sovereign debt burdens the needed AI transition.