Artificial Intelligence has the potential to significantly boost productivity and drive global economic expansion, IMF Managing Director Kristalina Georgieva said at the G20 Leaders’ Summit in Johannesburg, South Africa.
She highlighted that sluggish productivity growth has been a key factor behind slow global economic expansion, and AI offers a path to reverse this trend. “In our assessment, AI can deliver almost one percent additional economic growth. This is remarkable”, Georgieva noted.
The IMF chief warned that AI is rapidly reshaping labour markets. “In advanced economies, potentially 60 percent of jobs may be affected, 40 percent in emerging markets, and 26 percent in low-income countries. AI is like a tsunami hitting the labour market”, she said.
“AI offers immense opportunities, but its benefits will only be realized if countries prepare now”, she said, calling for a collaborative approach to maximize economic growth and protect labour markets. The IMF chief stressed that AI is not just a technological challenge but a global economic opportunity, requiring foresight, planning, and equitable policies to benefit all nations.
To help countries prepare, the IMF has developed an AI Readiness Index, evaluating nations across four key dimensions:
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Digital infrastructure
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Skills and flexible labour markets
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AI diffusion across the economy
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Ethics and regulation
The assessment revealed wide disparities: some countries excel in certain areas, few perform well across all, and many developing nations lag behind.
“We at the IMF recognise our responsibility. We are providing record-high financing to our members, including 50 programmes, 21 of which are in sub-Saharan Africa. We tailor our advice to the specific conditions of individual countries and support it with capacity development efforts”, Georgieva added.
Georgieva concluded by emphasizing that realizing AI’s full potential requires coordinated domestic and international action, with policies, infrastructure, and ethical frameworks in place to ensure inclusive growth.
She urged governments, businesses, and international institutions to act swiftly, investing in skills, infrastructure, and regulation to harness AI responsibly and prevent countries from being left behind.
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