AI “Tsunami” Threatens Jobs, Sparks Calls for Windfall Tax
Global experts warn that artificial intelligence could trigger massive white-collar job losses, reshaping labor markets faster than previous technological shifts. IMF chief Kristalina Georgieva described AI as “like a tsunami hitting the labor market,” estimating that 40% of jobs globally—and 60% in advanced economies—could be impacted. Concerns include middle-income job compression and the elimination of entry-level roles, with young workers particularly vulnerable.
The Citrini Research report highlighted a scenario where AI-driven productivity gains displace large swathes of white-collar labor, triggering sector-specific market impacts. Delivery platforms, payments companies, and software firms face elevated risk, while chipmakers, data centers, and AI model labs are likely beneficiaries. Rapid automation could weaken consumer spending, creating a feedback loop that dampens corporate revenues in intermediation-heavy industries.
Experts, including Alap Shah of Lotus Technology Management, are calling for governments to consider taxing AI-generated windfall gains as a stabilisation tool. In India, leaders like Vineet Nayar emphasize that domestic AI development and mass entrepreneurship are crucial to creating employment, warning that reliance on global models without local capacity could erode competitive advantage.
Pic courtesy: google/ images are subject to copyright
