IMF's Georgieva Warns AI Boom Adds Inflation and Debt Strains to Global Growth

IMF Managing Director Kristalina Georgieva said AI investment is becoming a key driver of countries' relative economic fortunes, but the boom is also inflationary and could widen inequality.

She warned that AI could add up to half a percentage point to annual world growth if done right, while high interest rates, soaring energy costs and record public debt strain governments.

She urged policymakers to stop delaying painful choices on debt and consider a prudently hawkish monetary stance.