Georgieva urged governments to adopt policies that both harness the technology’s benefits and protect workers at risk of being left behind.
Speaking at the World Government Summit dialogue on “Leveraging Artificial Intelligence and Enhancing Countries’ Preparedness” in Dubai on Tuesday, Georgieva praised the United Arab Emirates (UAE) for emerging as a fast‑growing global hub for AI development. She pointed to a recent Microsoft study indicating that 64% of the UAE’s working‑age population uses AI, the highest rate worldwide.
“This illustrates the dynamism we see in the region,” she said, noting the scale of investment and partnerships the Gulf has attracted from major technology companies. She added that Gulf Cooperation Council countries have spent decades investing in human capital, positioning themselves well to benefit from AI’s transformative potential.
Georgieva highlighted IMF estimates showing that, with supportive policies in place, AI could boost global productivity by up to 0.8 percentage points per year, pushing growth above pre‑pandemic levels.
In the Gulf region, she said, the gains could be significantly higher.
“AI could boost non‑oil GDP in Gulf countries by up to 2.8%,” she said. “For economies long dependent on hydrocarbon exports, this is an enormous opportunity to diversify and build new sources of growth.”
While emphasising AI’s potential, Georgieva warned of major labour market disruption. “On average, 40% of jobs globally will be impacted by AI, either upgraded, transformed or eliminated,” she said. “For advanced economies, the figure rises to 60%. This is like a tsunami hitting the labour market.”
She noted that one in 10 job postings in advanced economies already requires at least one new AI‑related skill. Workers with those skills may see wage and productivity gains, with knock‑on benefits for lower‑skilled service workers. However, middle‑skilled jobs face the greatest pressure, and young people and middle‑class workers could be hardest hit.
Georgieva cautioned that AI could widen global inequality unless proactive measures are taken. Countries with strong digital infrastructure, skilled labour forces and effective regulatory systems will benefit most. Those without such foundations may struggle to keep pace.
“AI looks unstoppable,” she said. “But whether countries can capitalise on its promise depends on the policy regimes they put in place.”
Georgieva outlined three priorities for governments seeking to leverage AI responsibly and effectively:
- Strong macroeconomic policies
Governments should modernise tax systems, invest in research and development, and expand reskilling and sector‑specific training programmes. Tax systems, she said, must avoid incentivising automation at the expense of people.
Effective financial regulation will also be crucial to ensure efficient markets and sound risk management in the AI era.
- Clear guardrails and responsible regulation
AI must be regulated to ensure it is safe, fair and trustworthy without stifling innovation. Countries are experimenting with different approaches, from risk‑based frameworks to principle‑based governance, but coordination is essential.
- Cooperation and partnerships
Scale is a major requirement for AI development. Georgieva said governments, AI researchers, and developers must work together, especially on data‑sharing frameworks and knowledge transfer.
“You can’t get scale without cooperation,” she emphasised.
Georgieva emphasised that AI will reshape economies in profound ways, bringing both opportunities and risks. “It falls to you, the world’s policymakers, to ensure that the opportunities are maximised for your countries and the risks controlled,” she said.
–IMF/ChannelAfrica–
