MARRAKECH, Morocco, October 18: The International Monetary Fund said artificial intelligence is poised to become a significant driver of global productivity growth, potentially lifting output by up to 0.8 percentage points annually. The statement was made during the IMF and World Bank Annual Meetings in Marrakech, where officials emphasized the growing role of advanced technologies in shaping the global economy.
IMF Managing Director Kristalina Georgieva said AI could be a transformative force for productivity, but warned that its impact will vary widely depending on countries’ readiness, digital infrastructure, and policy frameworks. She noted that countries such as the United States, Singapore, and Denmark are leading in AI preparedness, while many others face considerable challenges in adapting their economies to the technology.
According to the IMF, AI is expected to change the structure of global labor markets. While the technology may eliminate some job categories through automation, it will also create new roles in data analysis, software engineering, and technology services. Georgieva said the transition will require robust policy measures to manage disruption and ensure workforce reskilling.
The IMF has developed a new AI Preparedness Index to assess how well economies are positioned to integrate AI into their production and services sectors. The index considers factors such as education, digital infrastructure, innovation capacity, and regulatory readiness. Initial findings show that advanced economies are generally better equipped, while many emerging markets and developing countries face constraints that could limit their ability to benefit from AI.
IMF report highlights AI as key economic growth enabler
IMF Chief Economist Pierre-Olivier Gourinchas addressed concerns surrounding the rapid rise in AI-related investments, which he compared to past episodes of technological optimism. He said current investments are largely equity-funded and are not expected to pose systemic financial risks. However, he warned that productivity gains from AI have yet to fully materialize, even as technology spending has accelerated.
Gourinchas noted that the investment surge, while supporting short-term growth, could contribute to inflationary pressures in some economies. The IMF’s World Economic Outlook, released earlier this week, maintained its global growth forecast at 3 percent for 2025, citing AI as a potential medium-term catalyst but reiterating that sustained gains depend on complementary investments in human capital and governance.
The IMF also cautioned that the benefits of AI adoption are unlikely to be evenly distributed. Countries with limited digital capacity or weak regulatory institutions may experience slower progress. The Fund urged governments to invest in education, retraining programs, and digital infrastructure to close the readiness gap. Georgieva said the IMF is working with member countries to develop policy frameworks that support innovation while mitigating economic dislocation.
Long-term benefits of AI require institutional readiness
This includes assistance in crafting labor market policies, fiscal measures, and regulatory guidelines that align with AI-driven changes. The emphasis on AI comes amid broader concerns over the global economic outlook. Slowing growth in China, tighter financial conditions in advanced economies, and persistent geopolitical tensions have created an uncertain environment for policymakers.
Within this context, the IMF has identified AI as one of the few areas with the potential to enhance productivity and boost long-term output. The IMF plans to continue research on the macroeconomic effects of AI and will expand its technical assistance to help countries implement policy tools that facilitate safe and inclusive AI adoption. – By Content Syndication Services.