New York: International Monetary Fund (IMF) Managing Director Kristalina Georgieva has said that strong investment in artificial intelligence (AI) infrastructure is helping sustain global economic growth at around 3%, despite an energy supply shock.
Speaking at the IMF and World Bank annual meetings in Bangkok on Monday, Georgieva said the AI investment boom was generating significant economic benefits, particularly for Asian economies supplying the hardware and infrastructure needed to develop the technology.
According to the IMF chief, AI investment could boost growth in advanced Asian economies by 0.5 to 1 percentage point, while emerging Asian economies could see gains of 0.2 to 0.8 percentage point.
However, Georgieva warned that AI would have profound consequences for employment, education, economic growth and government tax revenues.
The IMF estimates that AI could augment, downgrade or eliminate around 40% of jobs over time, describing the technology as a “slow-moving tsunami.”
World Bank President Ajay Banga said AI could create significant productivity gains in developing countries, particularly in agriculture, healthcare and education.
Meanwhile, Singaporean President Tharman Shanmugaratnam warned that AI was reducing demand for entry-level jobs, particularly positions traditionally available to fresh graduates.
Shanmugaratnam urged governments to use AI to create quality employment opportunities and prevent widening economic and employment disparities between advanced and developing economies.