IMF chief urges countries to develop policies embedded in AI

Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), has called on governments worldwide to devise policies centered around artificial intelligence (AI). She recognized that AI growth in developed nations may outpace that in less affluent countries due to their readiness and adoption rates.

In an article published on Thursday, coinciding with the ongoing 2026 IMF-World Bank Annual Meetings in Thailand, Georgieva emphasized that nations require policies that are tailored to AI's distinct features yet flexible enough to handle its unpredictable trajectory and swift evolution. She underscored that robust digital infrastructure, a proficient workforce, and additional energy resources are crucial for successful AI integration.

Data centers, for instance, are projected to consume 3% of global electricity by 2030, as per the International Energy Agency.

Georgieva proposed three guiding principles for policymakers as they craft AI-specific plans: safeguarding macroeconomic and financial stability, leveraging existing tools like capital and concentration requirements to manage financial system risks, and bolstering cyber defenses. Central Banks, she suggested, can enhance security by testing banks' resilience.

The IMF chief advised governments and the private sector to accelerate their cyber defenses and highlighted that Central Banks can strengthen security by subjecting banks to resilience testing. She urged nations to reassess their medium-term plans in the context of AI transition, investing in infrastructure, skills, and tax systems designed for the AI era.

According to Georgieva, private capital could be supported by public-sector investments in AI research and development, citing Sub-Saharan Africa as an example. In this region, attracting private finance for AI infrastructure would involve enhancing the business climate and offering targeted government subsidies and guarantees. The IMF chief reiterated that companies must be able to reorganize and reallocate resources to allow AI to measurably enhance their businesses, emphasizing that a dynamic AI economy should facilitate the smooth entry and exit of firms.

Furthermore, Georgieva recommended addressing structural tax distortions that favor legacy investments by modernizing tax systems, reforming insolvency regimes, and improving legal certainty. She further proposed policies that "support workers and create opportunities," stressing the importance of equipping people with cognitive, creative, and technical skills that empower them to utilize AI.

Despite concerns about artificial intelligence, Georgieva remains optimistic about its potential to foster a more productive world, where humans, aided by technology, accomplish feats once deemed impossible.