{
  "id": 8529817,
  "title": "IMF tells EU ministers AI could boost growth but increase economic strains",
  "url": "https://urgent.news/2026/09/18/imf-tells-eu-ministers-ai-could-boost-growth-but-increase-economic",
  "topic": "ai",
  "section": "AI",
  "published": "2026-09-18T21:00:00.000Z",
  "source": {
    "name": "Gulf Times Business",
    "slug": "gulf-times-business",
    "url": "https://www.gulf-times.com/article/733662/business/imf-tells-eu-ministers-ai-could-boost-growth-but-increase-economic-strains"
  },
  "original_language": "en",
  "account": "An International Monetary Fund report warns that artificial intelligence could both fuel and complicate economic growth within the European Union. A September meeting of EU finance ministers in Dublin heard that AI could raise productivity by roughly 1% over five years. However, the IMF cautioned that this boost could also deepen inequality, strain power networks, and increase reliance on foreign technology if governments fail to strengthen economic integration. The report emphasizes that the benefits and downsides of AI adoption are expected to be unequally spread across nations, regions, and workers within the EU. To promote more even distribution of AI's advantages, completing the EU's single market is seen as crucial. The IMF echoes similar concerns expressed by former European Central Bank President Mario Draghi and the European Commission regarding Europe's fragmented capital, labor, and energy markets, which are inhibiting investment and innovation. Around 60% of workers in advanced European economies are found to be engaged in occupations highly susceptible to AI, according to the IMF. While some may gain increased productivity through AI tools, others might face job displacement as routine tasks become automated, particularly in fields where AI is more likely to replace labor rather than augment it. Furthermore, data centers, which already consume around 3% of the continent's electricity, are projected to see a sharp rise in demand as AI usage expands. Major technology hubs like Frankfurt, London, Amsterdam, Paris, and Dublin are among the areas most at risk, with existing data center clusters already straining local power networks. The IMF recommends that the EU invest in cross-border grid infrastructure and deepen the integration of the European energy market to mitigate these effects. Lastly, the IMF warns of Europe's growing strategic dependency on the US and China, the dominant players in AI model development. To avoid becoming overly reliant on foreign technology, Europe must invest significantly in its own AI industry. The report also notes that the advantages of AI will likely be unevenly distributed both among and within EU countries, with more advanced economies reaping disproportionate benefits due to their greater preparedness for and exposure to the technology.",
  "summary": "Artificial intelligence could lift European productivity by about 1% over five years, but risks widening inequality, straining power networks and increasing dependence on foreign technology unless gov...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Free Malaysia Today",
        "title": "IMF tells EU ministers AI could boost growth but increase economic strains",
        "url": "https://urgent.news/2026/09/19/imf-tells-eu-ministers-ai-could-boost-growth-but-increase-economic",
        "published": "2026-09-19T11:44:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}