International Monetary Fund Managing Director Kristalina Georgieva has warned that AI and AI-driven technological disruption will hit India hard, affecting the millions of young people who enter the country’s workforce every year.
More broadly, Georgieva estimated that the rapid development of artificial intelligence could affect around 40% of the global workforce, with automation and restructuring most vulnerable at the basic and routine level.
In an interview with NDTV on Friday, the IMF chief said the scale of the shift would 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 discuss the future of artificial intelligence and its economic implications. Prominent voices at the summit, including venture capitalist Vinod Khosla, echoed similar concerns about the scale and speed of disruption that AI could unleash.
How much will India be affected?
Georgieva further said that exposure to AI could reach up to 60% of jobs in advanced economies, while India’s impact rate is expected to be around 26%, she noted, citing studies supported by the IMF.
These numbers, she said, underscore the urgent need for governments to prepare their populations for an AI-driven economy. This includes not only acquiring new skills, but also developing the flexibility to adapt these skills to changing job requirements.
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She says they will be the hardest hit category because of the integration of AI into the workforce of 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 huge workforce, this means that the absolute number of affected workers could be substantial.
“We are already lagging behind in building the policy frameworks necessary to prepare people for this transformation,” she said.
Georgieva praises PM Modi
Speaking at the India Summit on the Impact of Artificial Intelligence, she praised Prime Minister Narendra Modi’s efforts to democratize AI and said that India has made several major structural reforms such as improving taxation and labor markets. According to the IMF’s top official, these 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 nations must prioritize reforming education systems for the AI economy, focusing not only on technical skills but also on promoting adaptability, openness and lifelong learning. She also emphasized the importance of global cooperation and called on countries to work together and learn from each other to cope with the changes that AI is expected to bring.
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“We are not helpless,” she said. “Policies can help us adapt to a world of artificial intelligence – but it will take focus, cooperation and determination.”
India’s AI Summit 2026 saw a number of world leaders, CEOs and business leaders from around the world come together to share their views on artificial intelligence and announce dozens of deals.
India expects more than $200 billion in investment over the next two years, and US tech titans unveiled new deals and infrastructure projects this week, Mint reported.