Asia stands to gain from AI boom: IMF

Rising investment in Artificial Intelligence (AI) infrastructure is helping sustain global economic growth at around 3 per cent despite mounting pressure from energy supply shocks, with Asian economies emerging as major beneficiaries of the technology-driven investment boom, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Monday.

AI-related investment could increase growth in Asia’s advanced economies by 0.5 to 1 percentage point and in emerging Asian economies by 0.2 to 0.8 percentage points, she said, highlighting the region’s growing role in supplying the hardware and technology needed to develop and operate AI systems.

Georgieva made the remarks at the opening event of the IMF and World Bank Group Annual Meetings at the Queen Sirikit National Convention Centre in Bangkok, Thailand.

She said the global economy was facing two opposing forces. Uncertainty over energy supplies and supply shocks were weighing on economic activity, while the rapid expansion of investment in AI infrastructure was generating fresh demand and supporting growth.

Against this backdrop, AI investment has become an important source of momentum for the global economy, helping offset some of the downward pressure from energy-related disruptions.

The rapid expansion of AI technologies has fuelled demand for advanced semiconductors, servers and other sophisticated technological equipment. Developing and operating AI models requires substantial investment in data centres, computing capacity and related digital infrastructure.

This has created new opportunities for Asian economies involved in manufacturing and supplying the hardware required by the global AI industry.

Georgieva said countries supplying AI-related hardware were particularly well positioned to benefit from the investment surge. Thailand is among the economies that stand to gain from this trend.

Meanwhile, World Bank Group President Ajay Banga has stressed that artificial intelligence should not be viewed as an inevitable threat to employment, arguing that appropriate policies and effective use of the technology can improve workers’ capabilities and create new job opportunities.