AI can boost global growth by 0.8%: IMF chief
IMF Managing Director Kristalina Georgieva said artificial intelligence (AI) could lift global growth by around 0.8%—enough to push us past pre-pandemic levels.
This is especially good news for India's "Viksit Bharat" digital push, according to IMF chief Kristalina Georgieva at the India AI Impact Summit.
AI's potential to offset trade slowdowns
Georgieva pointed out that investing in AI could help balance out slowdowns in global trade, which could lift global growth by around 0.8% points, pushing it above pre-pandemic levels.
But here's the catch: while AI is creating higher-paying jobs (like in the US, where one in 10 jobs now needs AI skills), it isn't helping everyone equally.
Job market shake-up
AI is shaking up the job market—high earners are spending more and driving demand for basic services, but middle-income roles are being squeezed as employment patterns shift.
Georgieva admitted that while new opportunities will pop up, there's real concern about job losses and widening income gaps.
India's digital ID advantage
India has a head start thanks to its huge digital ID system reaching over a billion people, making it easier to roll out AI benefits widely.
Still, Georgieva stressed that some developing countries face infrastructure obstacles, such as lack of connectivity or reliable electricity, which could limit access to AI's benefits.