IMF says AI investment keeps global growth around 3%, with major Asia benefits

The International Monetary Fund (IMF) managing director Kristalina Georgieva highlighted on Monday that strong investment in artificial intelligence (AI) infrastructure is contributing significantly to global growth, averaging around 3 percent. Asian economies such as Thailand are benefiting from this AI boom as they supply the hardware needed for this technology.

According to Georgieva, AI investment is causing a demand shock and an investment shock that could boost growth in advanced Asian economies by 0.5 to 1 percentage point, and emerging Asian economies by 0.2 to 0.8 percentage points. AI is already here, Georgieva stated, emphasizing its transformative impact on jobs, growth, education, and taxation.

The IMF anticipates a 40 percent of jobs will be augmented, downgraded, or eliminated by AI over time. While routine jobs are shrinking, low-paying jobs are increasing in sectors like construction and data centers. The United States, China, and India are the leading AI producers, but many firms building AI infrastructure are in Asia, with Thailand being the host of this year's meetings.

World Bank President Ajay Banga noted that the development bank is focusing on leveraging small AI to generate productivity gains in emerging markets, including for farmers, healthcare systems, and educators. Some concerns have been raised about AI reducing job opportunities for graduates, a problem that needs to be addressed soon.