The IMF's First Deputy Managing Director, Gita Gopinath, warns that AI could amplify the risks of an economic downturn by disrupting labor markets, financial markets, and supply chains. In a recession, companies may lay off workers and replace them with automation, which could lead to long-term unemployment. AI models used in financial markets may perform poorly during novel economic events and could trigger fire sales as prices drop rapidly. AI used in supply chain management training on "stale data" could produce major errors and breakdowns if an economic downturn occurred. Tax policies should not favor automation over workers, and workers need support through education, skills training, and stronger social safety nets.