IMF, OECD warn AI could widen rich-poor country divide

Business Recorder reported that IMF and OECD officials cautioned that countries with weaker electricity supply, digital networks and workforce skills could struggle to benefit from artificial intelligence. IMF official Era Dabla-Norris said the key issue for developing economies is their ability to adopt and spread the technology, while the IMF estimates effective use could lift global annual growth by up to 0.5% over the medium term.

The OECD projects AI could raise yearly productivity growth in its member countries by 0.4% to 1.2%, but chief economist Stefano Scarpetta noted that business adoption remains limited compared with consumer use. The IMF estimates around 40% of jobs globally could be affected, with younger and entry-level workers especially exposed as AI takes on tasks that help people build work experience. Investment in chips and AI infrastructure has supported growth and stock-market records, although questions remain about returns on that spending as borrowing costs rise.