Artificial Intelligence: A Growth Engine and Labor Market Risks

Kristalina Georgieva, the Managing Director of the IMF, noted that artificial intelligence has helped maintain global growth near 3% through 2026, despite rising financing costs. Georgieva anticipates that AI could add between 0.5 and 1 percentage point to growth in advanced Asian economies, while around 40% of jobs globally may be affected, rising to 60% in advanced economies. Investments in AI are shifting towards increased spending on semiconductors and data centers, raising questions about whether these investments will lead to sustainable productivity gains.