IMF's Georgieva says any slowdown in AI-driven growth would be factor for central banks

IMF Managing Director Kristalina Georgieva said on Friday that central banks should factor in a possible loss of momentum in growth driven by artificial intelligence when deciding how to tackle inflation. Speaking at the IMF headquarters in Washington, she said market concerns about reliance on the AI investment boom and high valuations were already affecting markets globally.

Georgieva said continued ups and downs in markets would make central banks’ work more difficult as risks to price stability had increased. Her remarks connect the outlook for AI investment with the decisions monetary authorities face in controlling inflation, but the report gives no forecast for the scale or timing of any slowdown. Business Recorder reported her comments, which put global technology-related investment and inflation risks in focus for market watchers.