The International Monetary Fund (IMF) suggests that strong investment in artificial intelligence is currently shielding the US economy from a significant downturn. While upgrading the outlook for global growth, the IMF cautions about the potential for increased tariff costs impacting consumers.
Kristalina Georgieva, the IMF's Managing Director, has voiced concerns that the benefits of AI may disproportionately favour countries already possessing robust economies, like the United States, which holds a dominant share of AI capabilities. She also highlighted the widening gap between advanced and developing economies in terms of AI readiness, urging for global cooperation to ensure AI benefits are inclusive. The IMF has developed an AI Preparedness Index to help countries assess and improve their ability to adapt to AI advancements.
Despite the optimism surrounding AI's potential, the IMF also warns of risks, including the possibility of an AI investment bubble and the potential for a sharp market correction. Such a correction could lead to tighter financial conditions and negatively impact global growth, particularly affecting emerging economies.
