This report from the IMF explores the risks posed on labour markets by the sheer scale and speed of AI transformation. While automation and robots have already displaced low- and middle-skill jobs involving routine tasks, generative AI's capabilities extend to more intelligent automation, potentially amplifying job losses in cognitive occupations.  The research explores how fiscal policies can be employed to steer generative AI and its deployment in ways that serve humanity best while cushioning the negative labour market and distributional effects to broaden the gains. Moreover, it underscores the importance of education and training policies to help prepare workers for the jobs of the future, highlighting that sector-based training, apprenticeships, and upskilling and re-skilling programmes could play a greater role in helping workers transition to new tasks and sectors.