Artificial intelligence (AI) is doing more than changing how people work. It is also helping support global economic growth, with countries across Asia set to benefit from rising demand for the technology and the hardware needed to run it.
International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Monday that strong investment in AI infrastructure was keeping global growth at around 3%, despite the pressure from an energy supply shock, reported Reuters.
Speaking at the opening of the IMF and World Bank meetings in Bangkok, Thailand, Georgieva said the AI investment boom was creating fresh demand and encouraging businesses to invest. This could give a significant boost to several Asian economies.
Georgieva said the AI boom could increase growth in advanced Asian economies by 0.5 to 1 percentage point. Emerging Asian economies could see a boost of 0.2 to 0.8 percentage point.
Many Asian economies are benefiting because they supply the hardware and other infrastructure needed to develop and run AI systems. Thailand is among the countries that could gain from this growing demand.
“AI, love it, hate it. It’s already here,” Georgieva said.
She added that the shift towards higher investment was helping keep the world economy growing at around 3%, even as the energy supply shock weighed on growth.
The IMF had forecast global growth of 3% for 2026 in July. The organisation is due to release an updated economic outlook on Tuesday.
While AI investment is supporting economic activity, Georgieva warned that the technology would have far-reaching effects on jobs, education, economic growth and government tax revenues.
She described AI as a “slow-moving tsunami”, pointing to the scale of changes it could bring over time.
According to Georgieva, the IMF estimates that AI could augment, downgrade or eliminate 40% of jobs over time. She also cited an initial study showing that 10% of jobs in the US already required AI skills.
Routine and repetitive jobs were shrinking, while employment in lower-paying sectors such as construction and data centres was increasing, she said.
Georgieva said AI was changing how people work and live. She also shared how she uses an AI assistant to receive a short daily message about her schedule.
The US, China and India are the most important producers in the AI supply chain, she said, while several companies building the infrastructure needed for the technology are based in Asia.
The impact of AI on employment was also a key concern raised at the meeting.
World Bank President Ajay Banga said the development bank was looking at ways to use smaller AI systems to improve productivity in areas such as farming, healthcare and education, particularly in emerging markets.
Singapore President Tharman Shanmugaratnam, who also spoke at the event, highlighted the pressure AI could put on job opportunities for graduates.
He said demand for entry-level jobs, including the first jobs people take after completing their education, was already facing a decline.
Shanmugaratnam warned that AI could widen the gap between developing and advanced economies if governments failed to act.
He said countries needed to use AI to create good jobs and ensure people could continue to build their careers even as technology changes the workplace.