The global economy stands on the cusp of a major technological transformation, with Artificial Intelligence (AI) poised to act as a significant accelerator, according to the head of the International Monetary Fund (IMF).
Speaking at a panel discussion during the AI Impact Summit, IMF Managing Director Kristalina Georgieva stated that AI has the potential to boost global economic growth by nearly a full percentage point, a surge that could help major economies like India achieve their long-term development goals.
"We did some research and here is the answer. Based on what we know, AI can lift up global growth by almost a percentage point. We say 0.8 per cent... It would mean that the world would grow faster than it did before the COVID pandemic," Georgieva said.
She described faster economic growth of this magnitude as "fantastic" for creating new opportunities and generating employment. Crucially, she linked this global trend directly to India's national ambition. "This is the magnitude that we see for India, and it would mean that India's Viksit Bharat is achievable," the IMF MD added.
India has set the ambitious target of becoming a Viksit Bharat (Developed India) by 2047, which includes growing the economy to a projected USD 30 trillion.
However, Georgieva’s optimism came with a stark warning about the disruptive nature of the technology. While AI promises efficiency and growth, it also poses significant risks to the global workforce, a phenomenon she likened to a force of nature.
"We calculated this risk is very high. We actually see the impact of AI...like a tsunami," she cautioned.
According to IMF research, the technology will have a profound impact on labor markets worldwide:
Globally: 40 per cent of all jobs will be affected by AI.
In Emerging Markets: The impact is projected to be around 40 per cent.
In Advanced Economies: The exposure is even higher, with a staggering 60 per cent of jobs set to be affected.
This disparity highlights a critical challenge: while advanced economies may see higher levels of automation, emerging markets like India may have a steeper hill to climb in preparing their workforce for the transition. The "tsunami" effect suggests that unlike previous technological waves, AI could impact high-skilled white-collar jobs as much as, if not more than, manual labor.
For India to harness the 0.8 per cent growth boost and achieve its Viksit Bharat target, the remarks imply a dual necessity: aggressively integrating AI to drive productivity while simultaneously building massive safety nets and reskilling programs to protect the 40 per cent of jobs at risk from the impending wave.
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