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Productivity gains from AI could help offset Asia's ageing population problem, IMF says

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Productivity gains from AI could help offset Asia's ageing population problem, IMF says

Business News Tech AI Productivity gains from AI could help offset Asia's ageing population problem, IMF says

Productivity gains from AI could help offset Asia's ageing population problem, IMF says

Artificial intelligence stands as a promising solution to counterbalance the issues arising from decreasing workforces across Asia. The International Monetary Fund points to AI's potential for enhancing productivity in nations experiencing demographic shifts. It is crucial for lawmakers to ensure that AI's benefits do not deepen existing inequalities within the region.

Artificial intelligence could help offset Asia's shrinking workforce as some countries' populations age, provided its adoption is scaled evenly across the region instead of deepening existing disparities, the International Monetary Fund said on Monday. Speaking at the launch of an IMF book on challenges and opportunities in Asia, IMF Managing Director Kristalina Georgieva said demography, economic integration and technology, specifically AI, are the three big "transformations" facing the region. "AI is projected to lift up growth in advanced Asia, where the ageing populations are, somewhere between half a percentage and one percentage point... and what is amazing is that if the countries capture productivity and this growth, they will more than offset the demographic pressure," she said.

Findings presented in the book show that countries such as China, Japan and South Korea could lose nearly 25% of their working population between now and 2050, a loss that could be offset by productivity gains made from AI. However, Krishna Srinivasan, director of the IMF's Asia and Pacific department, cautioned that policymakers must balance the benefits from AI adoption against the risk of a widening divergence across countries in Asia.


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