IMF Chief warns AI “tsunami” hitting jobs as UAE hosts Davos dialogue on inclusive growth 

During the 2026 World Economic Forum Annual Meeting in Davos, the UAE hosted a major dialogue at its Pavilion, gathering world leaders to address the evolving dynamics of the global economy, the impact of artificial intelligence (AI) on the workforce, and the future of inclusive growth amid swift economic and technological transitions.

Titled “The Great Rebalancing: Artificial Intelligence, Jobs, and the Future of Inclusive Growth,” the session featured H.E. Badr Jafar, the UAE’s Special Envoy for Business and Philanthropy, alongside Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), in a fireside chat focused on the risks and opportunities influencing the global economic landscape.

Referencing the IMF’s recent evaluations, Kristalina Georgieva emphasized that although global uncertainty remains extraordinarily high—and is expected to continue— the world economy has shown impressive resilience, with steady growth and upgraded IMF forecasts for the future. However, she warned that this resilience should not be assumed, given the significant structural changes driven by technology, geopolitics, climate change, and demographic trends.

“A tsunami is hitting the labour market,” said Georgieva. “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.”

Badr Jafar pointed out the UAE’s enduring strategic decision to create an economy that prioritizes resilience, openness, and international connectivity. “At a time when global systems are fragmenting, the UAE is doubling down on connection. We are known for open skies, open ports, and open minds – and the data shows the value of this approach,” he said. 

“Last year, the UAE attracted over $45 billion in foreign direct investment, up nearly 50 percent year-on-year, even as global FDI declined by 11 percent. 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 in nearly 10,000 new millionaires, more than any other country worldwide. In an age of fragmentation, our connectivity is a clear strategic advantage.”

The conversation examined IMF research regarding global growth forecasts and resilience challenges, with a specific emphasis on the transformation of labor markets due to AI. IMF estimates indicate that nearly 40 percent of global jobs will be significantly impacted by AI-driven changes—either enhanced, altered, or displaced—highlighting the critical need for policy and investment strategies that assist communities through this transition.

Read more | IMF warns: AI poses risk to 40 percent of jobs worldwide

Georgieva highlighted four essential enabling factors for achieving resilient and inclusive growth: the adaptability of the private sector, responsible AI implementation, stable trade flows, and effective fiscal policy. She also pointed out the crucial role of public investment in education, digital infrastructure, and access to AI resources to ensure meaningful community participation in the emerging AI-driven economy.

In the IMF’s global economic outlook, the UAE and the broader Gulf region were noted as consistent bright spots. Georgieva referenced three crucial enabling factors contributing to this performance: ongoing regulatory reforms designed to cut bureaucracy; sustained diversification of the economy, with non-oil sectors now accounting for over 75 percent of UAE GDP; and long-term investments in human capital, skills development, and inclusion.

The discussion urged a reconsideration of growth models to achieve economic efficiency in tandem with social equity, emphasizing the significance of creating quality jobs, empowering youth, and expanding access to economic opportunities. Discussions also underscored the roles of governments, the private sector, and strategic philanthropy in converting AI-driven productivity gains into inclusive and sustainable growth through social innovation, aligned incentives, and enhanced readiness for AI.

This dialogue illustrated the UAE’s ongoing commitment to influencing global economic discussions and contributing meaningfully to international initiatives related to inclusive growth, artificial intelligence, and the future of work. The session was an integral part of the UAE Pavilion’s overall program at the World Economic Forum Annual Meeting, emphasizing the role of responsible innovation, long-term investments, and sector collaboration in building a more resilient and inclusive global economy.