Accra: IMF Chief emphasizes AI, Green transition as imperatives for global economic growth
In a panel discussion at the AI Conference organized by Ghana’s Finance Ministry in Accra, Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, underscored the pivotal role of artificial intelligence (AI) and sustainable initiatives in driving global economic prosperity.
Speaking on the theme “AI As a Catalyst to Transform Economies in Sub-Saharan Africa,” Ms Georgieva emphasized that investing in the green transition and embracing AI adoption represent the world’s best opportunities for GDP growth.
Highlighting the potential productivity gains of 3%, 4%, and 5% through effective AI implementation, Georgieva stressed the urgency of leveraging technological advancements to overcome stagnating global growth rates.
She lamented that the annual average global growth, which stood at 3.8% before the COVID-19 pandemic, has now dwindled to approximately 3%, severely limiting improvements in living standards.
Ms Georgieva articulated AI as a transformative force capable of revitalizing productivity and stimulating economic dynamism in the wake of prolonged sluggish growth. However, she cautioned against the disruptive impact of AI on labor markets, predicting significant job displacement across advanced, emerging, and low-income economies.
With an estimated 60% of jobs in advanced economies and 40% in emerging markets poised to be affected by AI, Georgieva likened the impending changes to a “tsunami hitting the labor markets.”
Addressing the imperative for strategic action, Georgieva outlined four key areas identified by the IMF to harness the potential of AI responsibly and sustainably. Firstly, she emphasized the necessity of robust digital infrastructure to facilitate AI integration, acknowledging the existing disparities in digital accessibility across regions.
Secondly, she underscored the importance of investing in human capital and fostering adaptable labor markets capable of navigating technological disruptions effectively.
Furthermore, Georgieva stressed the critical role of innovation and entrepreneurship in maximizing the benefits of AI, emphasizing the need for research and development to drive economic dynamism.
Finally, she highlighted the significance of establishing comprehensive regulatory frameworks and ethical standards to mitigate potential risks associated with AI, such as inequality and misinformation.
Ms Georgieva’s statements resonated as a clarion call for global collaboration and strategic action to harness the transformative potential of AI while navigating its challenges responsibly. As nations embark on the journey towards a digitally-driven future, the principles of inclusivity, innovation, and ethical governance will be paramount in shaping a prosperous and sustainable global economy.
