IMF and OECD warn AI could deepen divide between countries — Channel NewsAsia

The International Monetary Fund and the Organisation for Economic Co-operation and Development warned that artificial intelligence could accelerate global economic growth, but poorer countries, smaller companies and younger workers risk missing out on some of its benefits. Broader adoption of the technology requires improved access to electricity, digital infrastructure and professional skills, Channel NewsAsia reports.

Estimates of the impact on growth

Era Dabla-Norris, deputy director of the IMF's Fiscal Affairs Department, said that for many developing countries, the key issue is the ability to adopt and spread AI. According to the IMF's estimate, the effective use of this technology could add up to 0.5% to annual global growth rates in the medium term.

At the same time, Dabla-Norris noted that the available aggregate data on productivity gains are still considerably more modest. The OECD estimates that AI could add between 0.4% and 1.2% to annual productivity growth in the organisation's member countries.

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Gap between potential and adoption

OECD Chief Economist Stefano Scarpetta stressed that the use of AI in workplaces lags behind its use by consumers. According to him, the technology has so far been integrated into core business functions only to a limited extent, although there is a significant gap between AI's potential impact and its actual use.

The IMF also estimates that around 40% of jobs worldwide could be affected by AI. Young workers and entry-level professionals may be particularly vulnerable if the technology takes over tasks through which they traditionally gain experience. Amid reports of staff cuts, Barclays said it plans to cut around 5,000 jobs this year, eBay is reportedly cutting 9% of its workforce, and Qualcomm is expected to reduce staff in various countries as part of a performance improvement programme.