Speaking during the IMF and World Bank annual meetings in Bangkok, IMF Managing Director Kristalina Georgieva emphasised the need for regulatory guardrails around AI. Discussions brought together policymakers and industry representatives to examine how the technology is changing production, business operations and labour markets, alongside concerns about the pace of development and the absence of adequate policy frameworks.
AI has the potential to improve efficiency, support innovation and raise output across a broad range of industries. Businesses are deploying the technology to automate tasks, analyse information and improve decision-making. If these applications translate into sustained productivity improvements, they could support economic growth and strengthen competitiveness.
However, the distribution of those benefits remains uncertain. An IMF study discussed at the meetings highlighted the possibility that AI could eliminate some jobs while creating others, with routine work particularly exposed to automation. New employment opportunities may emerge, but workers displaced from existing roles could face difficulties moving into occupations requiring different skills.
The transition also raises questions about inequality. Companies with access to advanced computing infrastructure, data and investment capital may be better placed to capture the gains, while smaller businesses and lower-income workers could struggle to adapt. Without suitable policies, productivity improvements may not translate into broadly shared gains in living standards.
Financial and technological risks add another dimension. The IMF’s programme for the meetings identified market concentration, cyber risks and financial stability as important issues in managing the economic effects of AI. These concerns become more significant as the technology becomes embedded in critical business processes and interconnected markets.
Effective safeguards would need to balance risk management with continued innovation. Policymakers face the challenge of establishing clear accountability, protecting consumers and workers, and supporting the skills development needed for an AI-driven economy without imposing rules that unnecessarily restrict beneficial uses.
The debate is therefore moving beyond the technology itself towards the institutions governing its deployment. AI could deliver substantial economic gains, but those gains are not automatic. Their scale and distribution will depend partly on how governments, businesses and international organisations manage the transition.
For the global economy, the central question is whether policy frameworks can keep pace with technological change and ensure that increased productivity does not come at the expense of economic security or social stability.
