Why AI is both the hope and the hazard for world leaders, according to IMF chief Georgieva

NEW YORK, NEW YORK - SEPTEMBER 22: Kristalina Georgieva, managing director for the International Monetary Fund, speaks onstage during "Semafor: The Next 3 Billion" at Convene on September 22, 2026 in New York City.

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SINGAPORE — The technology that investors and governments are counting on to lift the global economy is also adding pressure that threatens growth, the head of the International Monetary Fund said, urging policymakers to stop delaying painful choices on debt.

Managing Director Kristalina Georgieva told the audience at a Wednesday event in Singapore that artificial intelligence is "rapidly becoming a key driver of countries' relative fortunes in the world economy."

But the triple forces of AI advancement, soaring energy costs and record public debt are challenging the already "underwhelming" growth this decade.

"Love it, hate it, or fear it, AI is here," Georgieva said.

Tugged in two directions

Speaking ahead of a series of IMF and World Bank annual meetings that kick off next week, Georgieva framed the global economy as being tugged in two directions at once: a "negative energy supply shock" from the war in the Gulf, now in its eighth month, and a "positive demand shock" from the AI investment boom. The combined effect, she said, is "highly uneven across the world."

On the upside, global AI investment as a share of GDP will reach, and likely exceed, the amounts that went into building the railroads, electricity grid, or telecommunications network. AI hardware and related technology products already account for more than a tenth of world goods trade, she said.

The IMF estimates that AI could add up to half a percentage point to annual world growth if done right. "Going from 3% to 3.5% over a decade — that is like adding an economy the size of ASEAN to the world economy," Georgieva said.

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