The world was predicted to have a massive shock due to disappointment in AI
Quick Look
- IMF Managing Director Kristalina Georgieva said that investments in artificial intelligence will be equal to investments in the construction of railways, electricity grids and telecommunications.
- She warned that disappointment in AI due to weak financial results could cause a widespread shock, with current spending on AI hardware already accounting for more than a tenth of global goods trade.
- If done right, AI could boost global economic growth from 3% to 3.5% over a decade, equivalent to adding ASEAN economies to the global economy, but countries less involved in the AI supply chain risk falling behind, increasing global inequality.
AI-generated summary
Why It Matters
The IMF regularly publishes assessments of global economic trends, including the impact of technology on growth and inequality. Investments in AI have skyrocketed in recent years, driven by advances in machine learning and computing power.
Investments in artificial intelligence (AI) will be equal to the amounts invested in the construction of railways, power grids and telecommunications systems. This was stated by the Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva. She was quoted by CNBC.
However, she believes that if the financial results turn out to be disappointing, then disappointment in this technology could lead to a large-scale shock. This is due to the amount of borrowing that the largest companies involved in the development of AI went to. Moreover, today AI hardware and related products already account for more than a tenth of global merchandise trade.
Georgieva is convinced that with the right approach, artificial intelligence can significantly increase annual global economic growth.
“An increase from 3 to 3.5 percent over a decade is like adding an ASEAN-sized economy to the global economy,” the fund manager said.
However, this boom is largely unaffected by countries less involved in the global AI supply chain. This increases the risk of increasing global economic inequality.
What to Watch
AI outlook — possibilities, not facts
Investments in AI will continue to grow and reach the level of historical infrastructure investments in the coming years
Likely · Within years
Global economic inequality could increase due to uneven distribution of benefits from AI
Possible · Within years
Open Questions
- What specific measures does the IMF propose to reduce the risk of global inequality in the context of AI?
- How exactly will the financial performance of companies in the AI sector be measured, which could cause disappointment?
- Which countries does the IMF consider less involved in the global AI supply chain?
