Artificial intelligence has the potential to raise global economic growth by 0.8 per cent, International Monetary Fund Managing Director Kristalina Georgieva said on Wednesday, adding that India’s ambition of becoming a developed nation is within reach if the technology is harnessed effectively.
Speaking at the AI Impact Summit, Georgieva cited IMF research indicating that AI could lift output levels worldwide, pushing growth rates closer to those seen before the Covid-19 pandemic. “Based on what we know, AI can lift global growth by almost a percentage point — we estimate around 0.8 per cent,” she said.
Georgieva noted that faster growth would translate into broader economic opportunities, supporting job creation and productivity gains across sectors. She said the magnitude of AI’s potential benefits for India is significant, aligning with the country’s long-term development roadmap.
India has set a target of achieving “Viksit Bharat” status by 2047, coinciding with 100 years of independence, alongside aspirations of building a USD 30 trillion economy. Georgieva said AI-driven efficiency, innovation, and skills development could play a pivotal role in realising that vision.
Job Market Risks
At the same time, the IMF chief cautioned that AI’s rapid adoption could disrupt labour markets globally. “The risk is very high. We see the impact of AI like a tsunami,” Georgieva said, warning that around 40 per cent of jobs worldwide may be affected.
She highlighted disparities across regions, noting that emerging markets could see disruption levels similar to the global average, while advanced economies may face even greater shifts, with up to 60 per cent of roles exposed to AI-led changes.
Georgieva emphasised the need for governments to invest in reskilling and social safety nets to mitigate potential job losses. Policies that encourage digital education, workforce adaptation, and responsible AI deployment will be critical, she added.
Her remarks come amid intensifying global debate over AI’s economic implications, as policymakers weigh productivity gains against concerns over employment displacement and inequality. |
