DAVOS, Switzerland, January 24, 2026, 14:15 CET
- Nvidia CEO Jensen Huang, alongside other World Economic Forum leaders, promoted generative AI as a catalyst for job creation. (Reuters)
- IMF Managing Director Kristalina Georgieva has sounded the alarm that AI could affect 60% of jobs in advanced economies, with entry-level roles especially vulnerable. (The Guardian)
- With companies moving beyond AI pilots toward full deployment, union leaders and policymakers are pushing for stricter regulations and greater worker input. (Reuters)
At Davos this week, business leaders hammered home a clear message on AI: it’s set to create jobs, not cut them. But the International Monetary Fund’s chief warned that young workers could be the most affected. (Reuters)
The debate intensifies as companies shift from experimenting with generative AI—such as ChatGPT, which produces text and code—to broader rollout. Governments are increasingly pressured to tackle concerns over skills, safety, and jobs. Some executives have confided to Reuters that AI will be a handy pretext for layoffs already planned. (Reuters)
Davos also spotlighted political risks. Delegates grappled with U.S. tariff threats linked to Greenland and questioned whether AI-fueled productivity gains will really translate into higher wages and more jobs. (Reuters)
Nvidia CEO Jensen Huang, a key figure behind the AI boom, told the meeting that investments across the board are sparking job growth. “Energy is creating jobs. Chips industry is creating jobs. The infrastructure layer is creating jobs,” he said, before stressing: “Jobs, jobs, jobs.” (Reuters)
During another Davos session, Huang described AI as a platform shift set to impact energy, chips, cloud, and applications. He urged countries to cultivate their own AI capabilities. “Build your own AI,” he said, stressing that tapping into each nation’s unique “language and culture” is crucial. (World Economic Forum)
On Friday, Georgieva sounded a more somber note. IMF research she cited reveals that about 60% of jobs in advanced economies will be affected by AI—whether changed, replaced, or improved—compared to 40% globally. She also cautioned that younger workers would face the heaviest impact. (The Guardian)
“Tasks that get cut tend to be those done by entry-level workers,” Georgieva pointed out, warning this could shut young people out of their first jobs. She also warned that employees not directly impacted might still feel pressure, and noted that regulation isn’t keeping pace. (The Guardian)
Labour leaders say the corporate pitch doesn’t match reality on the ground. “AI is marketed as a productivity booster, which usually translates to doing more with fewer employees,” said Christy Hoffman, general secretary of UNI Global Union. (Reuters)
Executives were blunt. Cathinka Wahlstrom of BNY said AI cut onboarding research from two days down to a mere 10 minutes. Jeetu Patel, Cisco’s President, pointed out projects that used to require “19 man-years of work” are now finishing in weeks. “We completely rethought how we code,” Patel explained. (Reuters)
Some companies say they’ve finally figured out how to measure payback. IBM’s chief commercial officer Rob Thomas claimed AI has reached a point with clear “return on investment” — real gains that justify the spend. Still, PwC’s survey showed only one in eight CEOs believed AI was actually reducing costs and generating new revenue. (Reuters)
Headcount stayed in the spotlight. BlackRock COO Rob Goldstein emphasized the firm’s aim to “keep our headcount flat” despite ongoing growth. Meanwhile, Reuters reported that Amazon is preparing another round of corporate layoffs next week, targeting roughly 30,000 job cuts as part of a broader reduction effort. (Reuters)
The risk is clear and unwelcome: AI may drive profits long before wages do, while regulations struggle to keep up. Georgieva stressed that change is outpacing oversight. ECB President Christine Lagarde warned that rising mistrust between economies could block essential capital, data, and energy needed to fuel AI progress. (The Guardian)
Cloudflare CEO Matthew Prince cautioned that “autonomous agents”—software operating for users—could concentrate power and “eviscerate” small businesses. At the same time, Bill Gates called on society to “get ready for the opportunities and disruption,” proposing a tax on specific AI activities to help fund support for workers. (Reuters)
Unions are focused on control. Luc Triangle, general secretary of the International Trade Union Confederation, cautioned that sidelining workers in AI decisions will make them view these technologies as a threat. This worry isn’t fading, not even after Davos. (Reuters)
