Artificial intelligence investment is helping sustain global economic growth at around 3%, according to International Monetary Fund (IMF) Managing Director Kristalina Georgieva. Speaking at the opening of the IMF and World Bank meetings in Bangkok, Thailand, on Monday, she said strong investment in AI infrastructure was generating fresh demand and encouraging businesses to invest despite an energy supply shock.
The IMF had projected global growth of 3% for 2026 in July. The organisation is scheduled to release its updated economic outlook on Tuesday.
AI Investment Could Boost Asian Economies
Georgieva said the AI investment boom could increase growth in advanced Asian economies by 0.5 to 1 percentage point. Emerging Asian economies could see an additional boost of 0.2 to 0.8 percentage point.
Several Asian economies are positioned to benefit because they supply the hardware and infrastructure required to develop and operate AI systems. Thailand is among the countries that could gain from rising demand.
The United States, China and India are among the key producers in the AI supply chain, Georgieva said, while several companies building the infrastructure behind the technology are based in Asia.
She argued that increased investment was helping the global economy maintain its growth momentum even as higher energy-related pressures weighed on economic activity.
IMF Chief Warns of Major Changes to Jobs
Despite the economic opportunities, Georgieva cautioned that artificial intelligence could significantly reshape employment, education, economic growth and government tax revenues.
Describing AI as a “slow-moving tsunami”, she said the technology could augment, downgrade or eliminate 40% of jobs over time, according to the IMF's estimates. She also cited an initial study indicating that 10% of jobs in the United States already required AI skills.
Georgieva noted that routine and repetitive jobs were shrinking, while employment in lower-paying sectors, including construction and data centres, was increasing.
Her remarks highlighted the challenge facing governments and businesses: translating investment in AI into sustained economic benefits while preparing workers for changes in the labour market.
Entry-Level Jobs Face Growing Pressure
World Bank President Ajay Banga said the institution was exploring ways to use smaller AI systems to improve productivity in farming, healthcare and education, particularly in emerging markets.
Singapore President Tharman Shanmugaratnam also raised concerns about the technology's impact on employment opportunities for graduates. He said demand for entry-level positions, including the first jobs people take after completing their education, was already facing a decline.
Shanmugaratnam warned that AI could widen the gap between advanced and developing economies if governments failed to respond effectively. He emphasised the need for countries to use the technology to create good jobs and help people build sustainable careers as workplaces change.
Global Growth Depends on Managing AI's Impact
The discussions in Bangkok underscored the dual role of AI in the global economy. Investment in computing infrastructure and related technologies is creating demand and supporting growth, particularly across Asian supply chains.
At the same time, the potential displacement of workers and pressure on graduate employment raise questions about how the gains will be distributed.
The IMF's forthcoming economic outlook is expected to provide an updated assessment of global growth prospects. For policymakers, the challenge will be to harness AI-driven investment while ensuring that productivity gains translate into broader economic opportunities.
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