India Leads AI Democratization for Developing World, Says IMF Chief

Speaking at the Asia in 2050 Conference in Bangkok, Georgieva said the rapid development of AI has the potential to reshape the global economy, with Asia playing a central role in this transformation.

"AI could increase Asia's economic growth by nearly one percentage point every year if countries successfully use the technology to improve productivity," she said.

"India is helping to democratise AI not only for its own people but also for many developing nations," she added.

According to her, India's large digital ecosystem, growing technology sector and young workforce could help make AI tools more accessible across the world.

At the same time, the IMF chief warned that AI could disrupt labour markets across the region.

"The demand for both high-skilled and low-skilled workers may increase, but many middle-level jobs could face pressure as automation expands," she said.

Georgieva also expressed concern about the impact on entry-level jobs, which often involve routine tasks that can easily be automated.

"This could create uncertainty for young graduates entering the job market," she mentioned.

To deal with these challenges, she stressed that governments must invest in digital infrastructure, improve skills training and ensure that workers are able to adapt to rapidly changing technologies.

She added that building an adaptable workforce and encouraging continuous learning will be key to benefiting from AI while minimising its risks.

The IMF chief said countries that prepare early and invest in their people will be better positioned to take advantage of AI-driven growth, while those that delay risk falling behind in the global economy.

- IANS