AI's Double-Edged Sword: Boosting Global Growth While Disrupting 40% of Jobs Worldwide
February 20, 2026
AI could accelerate global growth while disrupting a large portion of the global workforce, with up to 40% of jobs affected worldwide and a split of 40% impact in emerging markets and 60% in advanced economies.
IMF research estimates AI could lift global GDP growth by about 0.8%, potentially pushing expansion beyond pre-pandemic levels.
Policymakers must prepare for the disruption by equipping workers with a learning-to-learn mindset and adaptability, especially for entry-level roles.
Policy reform and education are crucial to align AI adoption with inclusive growth and to prepare the labor force for AI-driven changes.
Guardrails are needed to ensure AI benefits protect dignity and human rights without stifling innovation; Europe favors efficient regulation, aiming for deeper capital markets, freer movement of skills, and simpler rules.
India is highlighted for democratizing AI, with reforms in taxation and labor markets to boost competitiveness and readiness for AI-driven changes.
Industry leaders stress that AI should be treated as a fundamental operational shift, not just a minor upgrade.
Displacement must be addressed with accommodations for workers and a focus on fairness and inclusion amid AI adoption.
Denmark’s flexible labor markets with strong social security is proposed as a blueprint for managing AI transitions.
Trade will continue in a multipolar world, even as regional and bilateral agreements adapt to tensions and shifts from AI-driven change.
Climate leadership remains tied to AI-enabled growth, with India potentially driving progress through initiatives like the International Solar Alliance.
International cooperation and coordinated reforms in education—emphasizing technical skills, adaptability, openness, and lifelong learning—are essential to navigate the AI transition.
Summary based on 12 sources
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Sources

India Today • Feb 20, 2026
Exclusive: IMF chief says India well-positioned in AI race thanks to digital infra
Moneycontrol • Feb 20, 2026
AI tsunami coming for jobs: IMF chief warns 40% of global workforce at risk, entry-level roles hit first
Business Standard • Feb 20, 2026
AI can lift global growth by 0.8%, but poses high risk to jobs: IMF chief