AI boom cushions global economy but widens growth divide — IMF

KINGSTON, Jamaica—The artificial intelligence (AI) investment boom has been helping to cushion the global economy against higher energy prices and geopolitical tensions, but its benefits remain unevenly distributed and could introduce new inflationary and financial risks, the International Monetary Fund (IMF) has warned.

In its latest World Economic Outlook (WEO) report, the IMF said strong investment in AI had provided an important source of demand, helping global economic activity perform better than expected in the first half of the year despite the prolonged war in the Middle East and continuing trade tensions.

“The AI-driven technology momentum provides an important offset to the geopolitical headwinds,” the IMF said in the recently released October issue.