AI boom fuelling global growth but widening economic divide, IMF warns
IMF Managing Director Kristalina Georgieva said the global AI boom is increasingly shaping nations' economic fortunes.
The International Monetary Fund (IMF) has issued a warning that the rapid growth of artificial intelligence (AI) could exacerbate economic inequality worldwide. According to IMF Managing Director Kristalina Georgieva, AI is rapidly becoming a central factor in shaping a nation's economic success, with investment in the technology expected to surpass previous transformative infrastructure expansions such as railways or electricity networks.
The technology's growth is being driven primarily by the United States, China, and India, where companies are heavily investing in data centers and related infrastructure. However, many other countries risk being left behind as AI advances. Georgieva emphasized that while AI drives growth in leading economies, it largely bypasses others, increasing the risk of widening economic disparities globally.
The IMF's warning comes amid growing international discussions about the risks and opportunities associated with powerful AI systems. Concerns range from the spread of misinformation and cyber threats to automation's impact on jobs and economic competitiveness. Professor Anné Verhoef, director of the North-West University AI Hub, stated that recent AI advances represent a significant technological leap but urged public discussion to remain grounded in facts.
Verhoef highlighted the most immediate danger lies in potential disruptions to critical digital infrastructure rather than more sci-fi scenarios involving machines taking over. Despite the risks, Verhoef affirmed that AI continues to deliver major benefits across various sectors, including medicine, education, and scientific research.
He also cautioned that attempts to slow global AI development would be challenging to enforce due to the competitive nature of countries and companies vying for technology and economic advantage. Instead, Verhoef advocated for stronger oversight of high-risk AI applications, particularly those used in warfare and weapons technology, to prevent surrendering control to AI systems.
As nations and businesses pursue AI's economic potential, Georgieva stressed that broader access will be crucial to prevent AI's next technological revolution from deepening global inequality.
Written by urgent.news from The Citizen's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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