AI investment is giving the global economy a boost, but the same spending surge is raising concerns about jobs and financial stability.
International Monetary Fund Managing Director Kristalina Georgieva said Monday that investment in AI infrastructure is helping global growth remain near 3%, despite rising energy costs linked to the Middle East conflict.
Speaking during the IMF and World Bank annual meetings in Bangkok, Thailand, Georgieva said AI investment was generating fresh demand for technology hardware and infrastructure, helping offset pressure from energy supply disruptions.
The IMF had projected 3% global growth for 2026 in July. However, its updated outlook, released Tuesday, raised that forecast to 3.1%, according to CNBC, while growth for 2027 remained at 3.4%.
The investment surge is particularly benefiting Asian economies that manufacture semiconductors and other equipment needed to build AI systems. Georgieva estimated that advanced Asian economies could gain 0.5 to 1 percentage point in growth, while emerging Asian economies could receive a boost of 0.2 to 0.8 percentage points, Reuters reported.
AI could affect four in 10 jobs worldwide
The economic gains come with concerns about employment. Georgieva warned that AI could affect approximately 40% of jobs globally, with the share rising to 60% in advanced economies, Reuters reported.
Those figures measure jobs exposed to AI, not positions expected to disappear. Some workers could become more productive with AI assistance, while others may face changes in job responsibilities, lower demand for certain skills or displacement.
She described the technology as a “slow-moving tsunami,” warning that its effects would extend beyond employment to education and government tax revenue as economic activity shifts from labor toward capital.
Singapore President Tharman Shanmugaratnam also raised concerns about declining demand for entry-level workers. Fewer openings for recent graduates could make it harder for young people to gain the experience needed to advance their careers.
World Bank President Ajay Banga, meanwhile, argued that smaller AI systems could help developing economies improve productivity in farming, health care and education without requiring the computing power needed to develop large AI models.
The growth boom has financial risks
AI investment is not guaranteed to deliver lasting economic gains. CNBC reported that the IMF warned a reassessment of AI’s commercial prospects could trigger a sharp stock market correction. In a scenario where expected productivity improvements fail to materialize, US equities could fall 20%, while global growth could be 1.1 percentage points below the IMF’s baseline projection by 2028.
The boom also depends on energy-intensive infrastructure, including data centers and semiconductor manufacturing. Persistently high energy costs could weaken investment momentum, while rising borrowing costs could make it more expensive for technology companies to finance new projects.
These pressures matter because investment is arriving before the full productivity benefits are clear. If companies spend heavily but struggle to turn AI capabilities into sustainable revenue, the economic boost could fade before other industries see meaningful gains.
Governments face a narrow window to prepare
The challenge for policymakers is to turn AI spending into durable economic gains rather than relying on infrastructure investment to keep growth afloat.
That means preparing workers for changing job requirements, updating education systems and helping businesses adopt AI in ways that improve output without unnecessarily cutting off career opportunities. Governments may also need to reconsider how they collect taxes if companies generate more value through automated systems and capital than through human labor.
The benefits will not be distributed evenly. Asian chipmakers and infrastructure suppliers are gaining from the current spending surge, while countries outside the AI supply chain could face higher energy bills without receiving the same economic boost. The IMF’s warning about widening differences between economies makes access to practical AI tools an important development priority.
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What this means for workers and businesses
For workers, AI skills could become increasingly valuable, but learning to use these tools may not be enough if employers also reduce the number of junior positions. Graduates entering the workforce could face a particular challenge if companies automate the routine tasks that traditionally help new employees build experience.
Businesses, meanwhile, face pressure to invest in AI while proving that the technology delivers measurable returns. Companies that automate without planning how to retrain employees or develop new roles could save money in the short term but weaken their talent pipeline over time.
For consumers, AI could eventually improve services and productivity, but the benefits may not arrive evenly. If investment costs, energy prices, and financial instability remain high, households could continue facing economic pressure even as technology companies expand.
The IMF’s broader message is that AI investment may support economic growth today, but lasting gains will depend on whether businesses can turn that spending into productivity improvements without leaving large parts of the workforce behind.
Other news: The White House has reportedly reversed its decision to restrict UK researchers’ early access to advanced AI models from OpenAI, Anthropic, and Google DeepMind.