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IMF, OECD warn AI could widen rich-poor country divide

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IMF, OECD warn AI could widen rich-poor country divide

Business News Tech AI IMF, OECD warn AI could widen rich-poor country divide

Recent conversations underscore the transformative possibilities of artificial intelligence in fostering global economic growth and improving productivity. Nevertheless, challenges in accessing this technology persist for less affluent nations and smaller enterprises. Additionally, youth and entry-level workers might experience increased job insecurity due to AI's workplace disruptions. As corporations initiate workforce reductions to adapt to AI, effective adoption of this technology will be vital in creating fair growth prospects moving forward.

Artificial intelligence could boost global growth, but poorer countries, smaller companies and younger workers risk missing out unless access to power, digital infrastructure and skills improves, according to officials from the IMF and OECD. The warning comes as massive investment in chips and AI infrastructure has helped support global growth and drive stock markets to record highs, while raising concerns about whether companies can generate sufficient returns on large spending commitments as borrowing costs rise. "For many developing economies, the critical question is whether they can adopt and diffuse AI," Era Dabla-Norris, deputy director of the International Monetary Fund's Fiscal Affairs Department, told the Reuters Global Markets Forum.

5% to annual global growth over the medium term, the IMF estimates. "But the aggregate productivity evidence, so far, is much less," Dabla-Norris said. 2% to annual productivity growth across its member countries. But its chief economist, Stefano Scarpetta, said that workplace use trails consumer use, with only limited adoption in core business functions. "There is a large gap between exposure and actual use," Scarpetta said.


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