AI could boost global growth by 0.5% annually if implemented properly: IMF

Kristalina Georgieva, head of the International Monetary Fund, has said that artificial intelligence could add half a percentage point to annual global economic growth, provided the technology is developed and deployed responsibly.

The growth boost would represent a meaningful contribution to global gross domestic product, though Georgieva cautioned that achieving this outcome depends on how AI is implemented across economies. Policymakers and technology firms must navigate critical questions around governance, equitable access and workforce transition as the technology becomes more prevalent.

The IMF chief's comments reflect broader consensus among economists that AI has significant productive potential, yet implementation challenges remain substantial. These include managing labour market disruptions, ensuring developing nations are not left behind, and establishing appropriate regulatory frameworks.

For Asia-Pacific economies, particularly Singapore and other developed markets in the region, the capacity to harness AI's benefits while managing risks will likely determine competitiveness in coming years. Regional policymakers are increasingly focused on creating favourable conditions for AI adoption while protecting workers and maintaining social stability.