The International Monetary Fund (IMF) says artificial intelligence (AI) could significantly transform productivity, investment, labour markets and economic policymaking while creating opportunities and risks for workers, businesses and countries.
The IMF said this in its 2026 Annual Report, titled “Navigating a Precarious World,” released on Wednesday.
The report said private-sector investment in AI could exceed $2 trillion globally in 2026, according to some external estimates, making it one of the fastest-growing drivers of economic activity.
It said AI-related technology investments contributed an estimated 0.5 percentage point to United States’ Gross Domestic Product (GDP) growth in 2025, while accelerated productivity growth could partly reflect early AI adoption.
The IMF noted that Asian countries were actively pursuing AI opportunities, with Singapore ranking highest on its AI Preparedness Index due to its digital infrastructure, education and regulatory framework.
“East Asia is a hub for chip manufacturing and design, while South-East Asia is building on its strength in manufacturing to move up the value chain as well,” it said.
However, the fund warned that rapid AI adoption could disrupt labour markets through job displacement and wage declines for some workers.
According to IMF research, workers with AI-related skills earned higher wages, but regions with high concentrations of such jobs were not necessarily experiencing overall employment growth.
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“Left out are middle-skilled workers whose jobs are highly exposed to automation,” the report said.
The IMF also warned businesses against risks from heavy, debt-financed AI investments, saying disappointing returns could trigger declines in equity valuations, wealth destruction and layoffs.
The fund said it was helping member countries assess AI-related risks and opportunities through indexes covering national preparedness, skills and skills imbalances.
The News Agency of Nigeria (NAN) reports that the IMF also identified rising public debt, trade reorientation and digital currencies as major forces shaping the global economy.
