At the IMF and World Bank annual meetings in Bangkok on Friday, Fed Chairman Kevin Warsh said AI is probably the most consequential change to the US and global economy in his lifetime, but its effect on employment over the next 12 or 18 months is unknown. He expects the path to AI gains to be very bumpy, given uncertainty about the technology and market structure. IMF Managing Director Kristalina Georgieva said about 10% of jobs are entirely new positions created by AI, while some existing occupations may become obsolete, and urged a “protect people, not jobs” approach that subsidizes firms hiring displaced workers. World Bank President Ajay Banga said developing countries struggle to access “Big AI”, but “Small AI” can help farmers and health workers, and the World Bank is helping countries build electricity and connectivity.
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Original headline: Fed chief warns of bumpy AI ride as job impact unclear
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