International Monetary Fund Managing Director Kristalina Georgieva has warned that artificial intelligence and AI‑driven technological disruptions would severely hit India, impacting millions of young people who enter the country’s workforce each year.
On a broader scale, Georgieva estimated that the rapid expansion of AI could affect around 40% of the global workforce, with entry‑level and routine roles being the most vulnerable to automation and restructuring.
In an interview with NDTV on Friday, the IMF chief said the scale of the shift will be like a “tsunami hitting labor markets”.
The warning comes as India hosts the AI Summit 2026, where global policymakers, founders, and investors have gathered to debate the future of artificial intelligence and its economic consequences. Prominent voices at the summit, including venture capitalist Vinod Khosla, have echoed similar concerns about the scale and speed of disruption AI could unleash.
How much will India be impacted?
Georgieva further said that exposure to AI could reach as much as 60% of jobs in advanced economies, while India’s impact level is expected to be around 26%, she noted, citing IMF-supported studies.
These figures, she said, highlight the urgent need for governments to prepare their populations for the AI‑driven economy. This includes not only acquiring new capabilities but also developing the flexibility to adapt these skills across changing job requirements.
According to her, the hardest hit category due to AI integration in workforce will be entry‑level jobs, many of which involve tasks that can be automated. This warning raises serious concerns for young graduates entering the workforce. Since India has a sheer size of workforce, this means the absolute number of affected workers could be substantial.
“We are already falling behind in building the policy frameworks necessary to prepare people for this transformation,” she said.
Georgieva praises PM Modi
Speaking at the India AI Impact Summit, she hailed Prime Minister Narendra Modi’s efforts toward democratizing AI, stating that India has made several critical structural reforms, such as improving taxation and labor markets. According to the IMF top executive, such efforts have positioned the country’s economy to be more competitive and better prepared than others for the AI-driven era, NDTV reported.
Referring to what lies ahead, she said that nations must prioritize reforming the education systems for the AI economy, focusing not only on technical skills but also on fostering adaptability, openness and lifelong learning. She also stressed the importance of global cooperation, urging countries to work together and learn from each other to navigate the changes AI is set to bring.
“We are not helpless,” she said. “Policies can help us adapt to the world of AI — but it will require focus, collaboration, and commitment.”
The India AI Summit 2026 has witnessed a number of world leaders, CEOs and business leaders from across the globe come together to share their views on artificial intelligence and announce dozens of deals.
India expects more than $200 billion in investments over the next two years, and US tech titans unveiled new deals and infrastructure projects this week, Mint reported.
