World Bank, IMF Urge Investment in Agriculture, Healthcare, Energy as AI Threatens 40% of Jobs

Global financial leaders call for investment in infrastructure, skills and job-creating sectors as artificial intelligence reshapes employment and threatens opportunities for young workers.

The World Bank and the International Monetary Fund (IMF) have urged governments to invest in agriculture, healthcare, renewable energy, infrastructure and skills development as artificial intelligence (AI) transforms labour markets and threatens to disrupt millions of jobs worldwide.

IMF Managing Director Kristalina Georgieva said AI could affect approximately 40 per cent of jobs globally, with the impact potentially reaching 60 per cent in advanced economies and about 26 per cent in low-income countries.

The warning comes amid growing concerns that automation and AI-driven technologies could eliminate some existing roles, change the nature of others and create new employment opportunities that require different skills.

Speaking during a panel discussion involving World Bank Group President Ajay Banga and Singapore President Tharman Shanmugaratnam, the leaders stressed that governments must prepare workers for technological change while creating conditions for businesses to generate sustainable employment.

World Bank: Make Job Creation a Priority

Banga said job creation had become central to the World Bank's development strategy, particularly as developing countries face the challenge of providing livelihoods for rapidly growing young populations.

He noted that approximately 1.2 billion young people would reach the age of 18 over the next 15 years, creating an urgent need for countries to expand employment opportunities.

According to him, jobs should not be limited to formal positions in large or small companies but should also include entrepreneurship and other productive activities that enable people to earn a living.

Banga emphasised that governments must invest in essential infrastructure, including roads, electricity, water, schools and healthcare facilities, while implementing policies that encourage private investment.

He noted that the private sector accounts for between 75 and 85 per cent of jobs in most countries, making it essential for governments to establish an environment in which businesses can invest, expand and employ more people.

Agriculture and Healthcare Offer AI Opportunities

Banga urged developing countries to prioritise practical and affordable AI applications capable of improving productivity in sectors that employ large numbers of people.

In agriculture, he explained that simple AI tools could help farmers identify crop diseases, access information about seeds and fertilisers, obtain credit and insurance, and find better markets for their produce.

Such applications could help small-scale farmers improve productivity, reduce losses and increase their incomes without requiring access to the most advanced AI systems.

In healthcare, digital tools could help connect patients with doctors remotely, support preliminary assessments and facilitate referrals to specialists, particularly in communities with limited access to medical services.

Banga also identified infrastructure, agriculture, primary healthcare, tourism and manufacturing as sectors with significant potential to generate jobs in developing economies.

He called for greater attention to Africa's creative industries and local enterprise, arguing that countries should develop their own businesses and productive capacity rather than depend primarily on employment outsourced from advanced economies.

Singapore President Warns Economic Growth May Not Create Enough Jobs

Singapore President Tharman Shanmugaratnam warned that economic growth alone would not necessarily guarantee sufficient employment.

He pointed to examples of Asian economies that had recorded strong growth without a corresponding increase in jobs, cautioning that AI could widen the gap between economic expansion and employment if governments failed to act deliberately.

Shanmugaratnam said workers in middle-income occupations could face pressure as automation changes the skills required across industries.

He also urged developing countries not to abandon manufacturing, noting that they could attract investment by improving infrastructure, offering competitive production costs and addressing regulatory obstacles that discourage businesses from expanding.

Renewable energy was another priority he identified, arguing that the sector could generate substantially more employment than fossil-fuel energy for comparable investment.

He further called for increased investment in healthcare, particularly in countries where the supply of nurses and other health professionals remains inadequate.

Young Workers Face Growing Employment Risks

Georgieva warned that young people entering the labour market could be particularly vulnerable to AI-driven changes.

Routine and entry-level jobs have traditionally provided opportunities for new workers to gain experience, develop practical skills and progress into more advanced positions. If automation reduces the availability of these roles, young people could find it more difficult to secure their first jobs.

She said the IMF's analysis of the United States labour market indicated that jobs requiring AI-related skills were attracting better pay, while demand for some routine and repetitive tasks was declining.

However, Georgieva also raised concerns about the quality of some emerging jobs, noting that certain positions created in areas such as data centre construction and related services might offer relatively low wages.

She called on governments to monitor labour-market trends, reform education systems and promote lifelong learning so that workers can continuously update their skills as industries change.

Shanmugaratnam similarly urged stronger partnerships between governments and businesses to help graduates obtain internships, workplace experience and their first jobs.

He argued that universities must combine academic education with practical training to prepare students for changing workplace demands.

AI Could Boost Growth, but Infrastructure Remains Critical

Georgieva said AI could support additional economic growth in Asia, with advanced Asian economies potentially gaining between 0.5 and one percentage point in growth, while emerging Asian economies could record gains of between 0.2 and 0.8 percentage points.

However, she stressed that these opportunities would depend on countries having reliable electricity, digital infrastructure, relevant skills and safeguards against the misuse of AI.

She also called attention to the implications of technological change for public finances, urging policymakers to consider how government revenue systems might need to adapt if economic activity increasingly relies on capital and technology rather than human labour.

The leaders agreed that governments must take deliberate steps to ensure that AI improves productivity and expands opportunities rather than deepening inequality between advanced and developing economies.

For countries such as Nigeria, the discussion highlights the importance of investing in electricity, digital connectivity, education, agriculture, healthcare and industries capable of absorbing a growing workforce.

The central challenge is not simply whether AI will change employment, but whether governments, businesses and educational institutions can prepare people to benefit from the transition.

As AI reshapes the global economy, investment in people, productive industries and essential infrastructure will be critical to ensuring that technological progress translates into jobs, better livelihoods and inclusive growth.