Politics · Saudi Arabia · 1 hr ago
AI investment supports growth but may reduce entry-level jobs
At annual meetings of the International Monetary Fund and World Bank in Bangkok, Singapore’s President Tharman Shanmugaratnam warned that wider use of artificial intelligence may reduce jobs for new graduates.
He said the risk is greatest at the first step of the career ladder, where people entering the workforce often begin.
At the same meetings, IMF chief Kristalina Georgieva said investment in AI infrastructure is helping keep global economic growth near 3 per cent.
She said the investment is also boosting growth in parts of Asia, where companies supply equipment and chips used in AI.
The benefits may be uneven because countries with stronger links to technology supply chains are better placed to gain.
Meanwhile, higher energy prices and disrupted supplies are adding pressure, especially for developing countries that import energy.
The meetings are addressing how governments can gain from AI while protecting job opportunities and managing these economic pressures.
The International Monetary Fund says investment in artificial intelligence infrastructure is helping keep global economic growth at about 3 per cent.
Singapore President Tharman Shanmugaratnam warned that wider use of AI could reduce demand for jobs for new graduates.
He said the risk is greatest at the first rung of the career ladder and is already evident in sectors most exposed to AI.
AI investment is expected to boost growth in Asian economies, but the gains may be unevenly shared between countries.
The debate is taking place amid energy supply disruptions, rising energy costs and pressure on public finances.
- Who
- Singapore President Tharman Shanmugaratnam warned about entry-level jobs; IMF Managing Director Kristalina Georgieva described AI investment’s contribution to growth.
- What
- AI investment is supporting economic growth while raising concerns about reduced demand for jobs for new graduates.
- When
- At the annual meetings of the IMF and World Bank; the article was published on 2026-10-12.
- Where
- Bangkok, Thailand.
- Why
- Wider AI use may reduce demand for workers entering the job market, while investment in AI infrastructure is boosting growth.
This story does not have two clearly opposing sides.
The problem is emerging at the first rung of the career ladder, where the need for employees entering the workforce for the first time after graduation is declining.
AI has become an increasingly important driver in determining countries’ relative positions in the global economy.
Tharman Shanmugaratnam warned at the annual IMF and World Bank meetings in Bangkok that AI could reduce demand for jobs for new graduates.
Asharq Al-Awsat published the article.
- Global growth
- About 3 per cent
- Advanced Asian economies
- AI investment expected to add about 0.5 to 1 percentage point to growth
- Emerging Asian economies
- AI investment expected to add about 0.2 to 0.8 percentage points to growth
- Meeting location
- Bangkok
Sources
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