AI Summit: AI could accelerate global growth; help achieve Viksit Bharat, says IMF MD Kristalina Georgieva

International Monetary Fund managing director Kristalina Georgieva

• AI could boost global growth by 0.8 percentage points
• AI could impact up to 60% of jobs in advanced economies.
• India's digital infrastructure and youth boost AI adoption

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Artificial intelligence could accelerate global economic growth and help India move closer to its “Viksit Bharat” aspirations, with IMF Managing Director Kristalina Georgieva highlighting both opportunities and risks from rapid technological adoption at the India AI Impact Summit on February 20.

Georgieva noted that artificial intelligence has the potential to lift global growth by around 0.8 percentage points, which could push worldwide economic expansion above pre-pandemic trends.

“Countries that move faster on digital adoption and skill development are likely to gain more than those that don’t,” Georgieva said.

At the same time, Georgieva cautioned that the labour-market impact of AI could be profound. She described the potential disruption as “tsunami-like”, estimating that around 40 percent of jobs in emerging markets and up to 60 percent in advanced economies could be affected in some form by artificial intelligence.

She also flagged financial stability concerns arising from rapid technological shifts

Despite these concerns, the IMF chief struck an optimistic tone, stressing that AI’s impact would be positive on employment. However, it could lead to few people getting some jobs and a large swathe of population getting low-paid work.

“The total impact on employment of AI is positive, but it means that smaller segment of people get higher opportunities,” Georgieva said.

Georgieva stressed that education systems would need to be revamped to reflect the demands of an AI-driven economy. Economies with strong digital infrastructure are likely to benefit more, she said, adding that policymakers should candidly assess both successes and failures in AI adoption to avoid a backlash similar to what was witnessed during globalisation debates.

She noted that India may be relatively well positioned given its investment in digital public infrastructure and its young population, which is generally more open to technology adoption and innovation.