It is emerging that Artificial Intelligence (AI) is not just reshaping industries; it could soon drive global economic growth, says the International Monetary Fund.
The International Monetary Fund (IMF) says AI has the potential to raise world economic growth by between 0.1% and 0.8%, a contribution that can be described as “transformative.”
Speaking at the recent World Bank/IMF Meetings in Washington, IMF Managing Director Kristalina Georgieva said that while much of the AI investment boom is centered in the United States, its ripple effects could soon be felt across the world as more sectors adopt AI-driven solutions.
The IMF chief believes AI would be valuable only if it makes a major contribution to productivity and growth, and the fund’s analysis reveals that the technology will be a good factor for driving global economic growth.
While that figure might sound small, it’s significant in economic terms. The global economy currently grows at around 3 percent annually, and even a 0.5 percent increase could translate into trillions of dollars in new output over time.
In practical terms, AI’s growth contribution will come from smarter manufacturing, more efficient logistics, better healthcare delivery, and data-driven decision-making in government and business.
Experts, for instance, say banks using AI for risk assessment can lend more efficiently, farmers can use predictive tools to improve yields, and small businesses can automate tasks that previously took hours.
“The second one is, how would then AI penetrate the rest of the economy? How would it transform sectors? Because AI would be valuable only if it made a major contribution to productivity and growth,” the IMF chief remarked.
She added, “We have done our assessment. Our view at this point is that indeed AI will contribute to growth somewhere between 0.1 and 0.8 percent. This is significant. Remember, we are stuck in this around 3 percent growth right now. If we were to extract that kind of boost of growth, that would be very significant for the world.”
Such productivity gains, analysts say, can lead to higher wages, new job categories, and better living standards, provided governments and businesses manage the transition responsibly.
However, Georgieva also cautioned that realizing this potential will depend on how widely AI is adopted and how equitably its benefits are shared. Many developing economies still lack the infrastructure, digital skills, and energy capacity to take full advantage of AI-driven growth.
