AI Infrastructure Boom Cushions Global Economy Against Energy Shock, Says IMF Chief Kristalina Georgieva

Strong investment in AI infrastructure is successfully sustaining global growth at approximately 3 per cent, delivering significant advantages to hardware-supplying Asian economies such as Thailand, International Monetary Fund managing director Kristalina Georgieva announced on Monday.

Speaking at the annual meetings of the IMF and World Bank in Bangkok, Ms Georgieva noted that the artificial intelligence investment boom is generating an immediate "demand shock, an investment shock" capable of boosting growth by 0.5 to 1 percentage point in advanced Asian economies, and 0.2 to 0.8 percentage point in emerging Asian markets.

"AI, love it, hate it. It's already here," Ms Georgieva remarked to hundreds of attendees. "That shift into higher gear is what is keeping the world economy growing at around 3 per cent, despite the fact we are being dragged down by the energy supply shock.">

The IMF previously projected global growth at 3 per cent for 2026, with an updated outlook scheduled for release on Tuesday. The week-long series of meetings has drawn roughly 18,000 participants, including finance officials from the IMF's 191 member countries. However, several high-profile ministers are bypassing the event to address domestic matters, notably US Treasury Secretary Scott Bessent and Spanish Finance Minister Arcadi Espana, according to sources.

Describing artificial intelligence as a "slow-moving tsunami," Ms Georgieva warned of its profound implications for employment, growth, education, and government tax revenues amid a structural transition from labor to capital. The IMF projects that AI could eventually impact 40 per cent of jobs through augmentation, downgrading, or elimination. Initial findings indicate that 10 per cent of positions in the US already demand AI competencies. While routine and repetitive tasks decline, lower-paying roles within construction and data centres are expanding.

"It is a transformative technology. It so completely changes how we work, how we live," she stated, offering her own routine of receiving a 30-second daily schedule briefing from an AI assistant. She highlighted the US, China, and India as primary contributors to the AI supply chain, while noting that Thailand and other regional nations host numerous infrastructure-building firms.

World Bank President Ajay Banga emphasized the institution's commitment to promoting "small AI"—systems independent of large language models—to drive massive productivity gains for agricultural workers, healthcare providers, and educators across emerging markets.

Singapore's President Tharman Shanmugaratnam, addressing the same gathering, urged governments to tackle the shrinking demand for entry-level positions among recent graduates. He cautioned against allowing AI to widen economic disparities between developing and advanced nations, stressing the need for proactive policies to foster human-centric employment opportunities.