From Financialexpress · Ajay Joseph · · 1m 30s
AI Boosts Global Growth But Widens Economic Divide
AI could boost global growth by 0.5% but risks widening gaps between rich and developing economies.
In brief
AI could boost global growth by 0.5% but risks widening gaps between rich and developing economies. AI adoption may increase global economic growth by up to 0.5% but could leave developing economies behind due to uneven infrastructure and skills. Originally reported by Financialexpress.
AI's Global Growth Potential
The IMF estimates AI could increase annual global economic growth by up to 0.5% over the medium term.
Uneven AI Adoption Risks
Gaps in electricity access, digital infrastructure and workforce skills could prevent developing economies from capitalising on ai.
Productivity Gains Limited
The IMF warns that visible productivity benefits across the wider economy have been less pronounced than investment scale suggests.
OECD's Productivity Estimate
The OECD estimates ai could add 0.4% to 1.2% to annual productivity growth across its member countries.
AI Adoption Lagging
Businesses are making limited use of ai in core functions despite consumer adoption growth.
Developing Economies at Risk
Reliable electricity, digital connectivity and skilled workers are essential for developing economies to integrate ai effectively.
Productivity Divide Threatens
Businesses with capital and advanced technology could use ai to reduce costs while smaller firms lag behind.
AI Investment Returns Questioned
Higher borrowing costs and limited productivity gains raise questions about ai investment returns.
Job Market Impact
Around 40% of jobs worldwide could be exposed to ai, with entry-level workers at particular risk.
The key point
AI adoption may increase global economic growth by up to 0.5% but could leave developing economies behind due to uneven infrastructure and skills.
