Productivity gains from AI could help offset Asia's ageing population problem
Artificial intelligence could help offset Asia's shrinking workforce as some countries' populations age, provided its adoption is ‌scaled evenly across the region instead of deepening existing disparities, the International Monetary Fund said on Monday.
According to the International Monetary Fund (IMF), artificial intelligence (AI) could help address Asia's declining workforce as some countries in the region experience population aging. Managing Director Kristalina Georgieva highlighted AI as one of the three major transformations facing the Asia region, along with demographic shifts and economic integration.
She stated that AI could boost growth in advanced Asia between half a percentage point and one percentage point. If countries effectively harness productivity gains from AI adoption, it could offset the demographic pressure and potentially surpass it. Countries like China, Japan, and South Korea may face a nearly 25% loss in their working population by 2050, but AI productivity gains could mitigate this issue.
However, IMF director Krishna Srinivasan cautioned policymakers to balance the benefits of AI adoption against the risk of growing disparities between countries in Asia. He emphasized that advanced economies could benefit more from AI, as they are better positioned to capture the upside, while emerging markets have less exposure but also less capacity to leverage AI's potential.
Georgieva added that reforms aimed at improving skills and productivity could accelerate AI adoption by up to a decade in some countries. Moreover, deeper regional trade agreements and reducing non-tariff barriers could increase Asia's GDP by approximately 1.8% in the long run.
Written by urgent.news from Bangkok Post Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
