By Stephen Simon
The International Monetary Fund (IMF) and the World Bank have warned that the rapid adoption of artificial intelligence could worsen unemployment in Nigeria and other developing economies unless governments take urgent steps to prepare their workforces for technological changes.
The warning came during the ongoing IMF and World Bank annual meetings in Bangkok, Thailand, where global economic leaders are examining the implications of technological advances for employment, productivity and economic development.
IMF Managing Director Kristalina Georgieva described artificial intelligence as a major force that could significantly reshape the global labour market, warning that a substantial proportion of jobs could be affected as businesses increasingly adopt automated systems.
The IMF has estimated that approximately 40 per cent of jobs globally could be affected by AI, although the impact will vary across countries, industries and occupations.
For developing countries such as Nigeria, the challenge is particularly significant because of existing unemployment, skills shortages, inadequate infrastructure and limited access to advanced technology.
World Bank President Ajay Banga said the institution’s priority was to ensure that economic development translated into employment opportunities, stressing the importance of deploying technology to improve productivity and create jobs rather than simply replace workers.
He advocated practical and affordable AI applications in sectors such as agriculture, education and healthcare, where the technology could help address longstanding development challenges.
Nigeria has increasingly featured in discussions about AI adoption in Africa, alongside countries such as Kenya and South Africa. However, inadequate electricity supply, limited digital infrastructure and gaps in technical education remain obstacles to widespread adoption.
Experts have repeatedly stressed the importance of investing in digital skills, vocational training and education to enable young people to participate in emerging industries.
The warning presents a fresh challenge for Nigerian policymakers as they seek to tackle unemployment, attract investment and prepare the economy for an increasingly technology-driven global marketplace.
