Artificial Intelligence (AI) could help lift global productivity and add nearly one per cent to worldwide economic growth, according to International Monetary Fund (IMF) Managing Director, Kristalina Georgieva.
Speaking at the closing session of the G20 Leaders’ Summit in Johannesburg, Georgieva said sluggish productivity remained the biggest drag on global expansion but noted that AI “can reverse this trend”, describing its economic potential as “remarkable”.
She however cautioned that the technology is reshaping labour markets at an unprecedented pace. The IMF estimates that AI could affect up to 60 per cent of jobs in advanced economies, 40 per cent in emerging markets and 26 per cent in low-income countries — a shift she likened to “a tsunami hitting the labour market”.
To measure countries’ preparedness, the IMF has created an AI-readiness index capturing digital infrastructure, skills and labour flexibility, economy-wide diffusion, and ethical and regulatory frameworks. Georgieva said the assessment shows wide disparities, with many developing nations trailing significantly.
She urged governments to prioritise domestic policies that expand digital infrastructure, power supply, skills development and innovation-friendly tax regimes. She also called for a global ethical and regulatory platform under the United Nations to prevent widening gaps in AI adoption.
Georgieva commended South Africa for its leadership of the G20 and the October Declaration on Debt, while noting that the IMF is supporting members with a record 50 financing programmes — 21 of them in sub-Saharan Africa.
This year’s summit, the first G20 gathering hosted on African soil, convened global leaders under the theme: “Solidarity, Equality and Sustainability.”
