Artificial intelligence is becoming a double-edged sword for the global economy, according to officials at the IMF and World Bank. IMF Managing Director Kristalina Georgieva said AI has been a major driver propping up growth this year, with related investment and trade lifting output in several economies and helping keep global expansion near 3% despite an energy supply shock. "Love it, hate it, or fear it," she said, noting the first wave of impact is already visible.
Georgieva estimated that AI adoption could lift growth by 0.5 to 1 percentage point in advanced Asia and 0.2 to 0.8 percentage point in emerging Asia. At the high end, she said, that would more than offset the loss from aging populations. But the same technology is expected to disrupt labour markets, and the World Bank's jobs council is urging "crisis-era" employment support measures to help workers adapt.
The two institutions agree that AI presents both a growth opportunity and a workforce challenge, though the IMF's remarks focus more on the upside while the World Bank's council emphasises protective policy. The source does not detail specific policy proposals, but the call for crisis-era measures signals concern that existing safety nets may be insufficient for AI-driven change.