Kristalina Georgieva says artificial intelligence promises growth but risks deepening inequality without preparedness…reports Asian Lite News
Artificial intelligence could become a powerful driver of economic productivity but also a major source of inequality both within and across nations, International Monetary Fund (IMF) Managing Director Kristalina Georgieva has warned.
Speaking at a press briefing in Washington on Thursday during the 2025 Annual Meetings of the World Bank Group and the IMF, Georgieva said that while AI is fuelling “incredible optimism” among investors, it also carries significant risks of divergence in how countries and workers benefit from its spread.
“The AI investment boom is bringing incredible optimism,” she said. “AI will contribute to global growth somewhere between 0.1 percent and 0.8 percent, which is significant.”
Her comments came as the IMF released its latest World Economic Outlook, which slightly raised the global growth forecast for 2025 to 3.2 percent. However, the Fund also warned that new tariff measures and trade tensions were weighing on future prospects, projecting growth to fall to 3.1 percent in 2026. “We are stuck in this around 3 percent growth right now. And if we were to extract that kind of boost of growth (from AI), that would be very significant for the world,” Georgieva said.
The IMF managing director cautioned, however, that the benefits of artificial intelligence will not be evenly shared unless countries are adequately prepared to integrate the technology into their economies. To measure readiness, the IMF has developed what it calls the AI Preparedness Index, ranking countries across four dimensions: digital infrastructure, labour market skills, innovation, and the extent of AI penetration in different sectors.
According to Georgieva, there is already “a very big distribution from the best to the laggers” in how countries are positioned to take advantage of AI technologies. “So, the risk we see is that we may end up in a world in which there is an increase in productivity, but it is also a source of divergence within countries and across countries,” she said. “This is why preparedness really matters.”
The IMF’s new index, she added, is meant to help policymakers understand where they stand and what reforms are needed to narrow the gaps between early adopters and economies that are falling behind. Georgieva’s warning reflects a broader concern within the IMF and other international bodies that technological progress could deepen inequality rather than reduce it. Wealthier nations and companies, with better infrastructure and access to capital, are more likely to capture the benefits of AI innovation, while developing economies could face increased pressure from automation and shifting trade patterns.
At the same press conference, the IMF chief presented the institution’s Global Policy Agenda, outlining three overarching priorities for global policymakers: unlocking private sector growth, rebuilding fiscal space and reducing debt, and addressing global imbalances.
She urged governments to focus on enabling environments that support innovation and investment while maintaining fiscal discipline and social stability. “Uncertainty is here to stay, and change is unstoppable, but with change comes opportunity,” Georgieva said. Her remarks come amid growing debate over the role of AI in shaping the global economy, as governments, businesses and workers grapple with how to adapt to rapid advances in automation, data-driven decision-making, and generative technologies.
While the IMF has been generally optimistic about AI’s potential to lift productivity and living standards, Georgieva’s latest comments highlight the need for careful policy design to ensure that the gains do not exacerbate inequality between nations or within societies. The Fund’s economists have also pointed out that while AI could boost growth by improving efficiency and innovation, it could disrupt labour markets, displace workers, and concentrate wealth among technology leaders.
For developing economies, in particular, the challenge lies in building digital infrastructure and human capital fast enough to participate meaningfully in the AI-driven global economy. Without targeted investment and education reforms, these countries risk being left behind. Georgieva’s call for preparedness underscores the IMF’s evolving focus on technology as a critical driver of future economic outcomes. In recent years, the Fund has expanded its analysis to include digital transformation, climate finance, and other structural trends shaping long-term growth prospects.
As AI continues to reshape industries from finance to manufacturing, Georgieva’s message was clear: governments must act now to ensure they are ready for the technological wave ahead. “AI has enormous potential,” she said. “But whether it becomes a force for convergence or divergence will depend on how well we prepare.”
