New Delhi, Feb 21: Artificial intelligence is advancing at a pace never seen before, reshaping economies and labour markets across the globe, but without thoughtful regulation it could deepen inequality and displace workers, IMF Managing Director Kristalina Georgieva has said.
In an interaction with Business Today on the sidelines of the AI Impact Summit in New Delhi, Georgieva described AI as the fastest technological transformation in history, urging countries to act decisively to keep pace with change.
She noted that AI is already influencing how people work, communicate and live, warning that nations that hesitate risk being left behind in the race for competitiveness and growth.
At the same time, Georgieva cautioned that the technology carries serious risks. While AI can boost productivity and unlock higher economic growth, it may also disrupt employment patterns and widen the gap between those who benefit from innovation and those who do not.
She stressed that policymakers must put in place regulatory guardrails to manage these risks, particularly the displacement of workers, and ensure that the gains from AI are shared broadly across society.
Raising concerns about inequality, Georgieva said the divide between the “haves” and the “have-nots” could expand if countries fail to adopt inclusive strategies. She underscored the importance of making AI accessible so that developing nations are not left on the margins of technological progress.
Praising India’s approach, she said the country’s push to democratise AI could serve as an example for other emerging and developing economies, especially in the Global South.
Georgieva added that the International Monetary Fund is committed to helping its member nations harness the opportunities created by AI while carefully managing associated risks, with the goal of ensuring that technological progress benefits society as a whole.
