IMF Chief Georgieva concerned about developing economies falling behind in AI

The IMF Chief Kristalina Georgieva has shared her concerns about developing economies falling behind in the global AI market. 

While AI technology promises enormous gains in productivity, efficiency, and innovation, IMF Managing Director Kristalina Georgieva is raising concerns that those benefits may remain concentrated in countries and companies that are already equipped to boost development, causing a problem for developing countries. 

IMF chief calls out uneven progress in AI development 

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has warned that countries around the world are unprepared for the accelerating rise of artificial intelligence (AI). 

Speaking on Monday during a meeting with civil society groups at the IMF and World Bank Annual Meetings, Georgieva urged global stakeholders to “ring the alarm bells” over the lack of readiness to manage the transformative power of AI. She pointed out major gaps in regulation, ethics, and infrastructure.

“The regulatory ethical foundation for AI for our future is still to come into place,” Georgieva said, stressing that the world is “falling shortest” in these areas.

Georgieva noted that the rapid technological developments driven by AI are currently dominated by countries with robust economies, particularly the United States, which holds a “lion’s share” of AI capabilities. 

China and other upcoming countries have also developed a notable presence in the industry, but developing countries remain far behind due to their limited infrastructure and fewer opportunities to leverage AI’s potential for growth and innovation.

She encouraged advocacy groups, NGOs, and community leaders to urge their governments to act before the divide becomes irreversible.

“The IMF is quite worried that the gap between advanced economies and low-income countries on readiness for AI is growing,” she said. “It’s making it harder and harder for developing countries to catch up.”

Georgieva added that the issue threatens to deepen inequality in access to technology, education, and opportunity. Without intervention, the uneven development of AI technology could reinforce existing divides between rich and poor nations.

Call for regulation and ethical deployment 

Georgieva stated that while many countries are embracing AI’s potential for economic growth, few are adequately prepared to regulate it responsibly. She stressed the urgent need for both national and international frameworks that ensure AI is developed and deployed ethically.

To help policymakers assess their readiness, the IMF has developed an AI Preparedness Index. The index evaluates countries across four key categories. The first is whether they have the infrastructure required to support AI development. The second is the labor and skills available in a particular country. Third is the country’s ability to create and adapt new technologies, and lastly, the existence of laws, supervision, and ethical standards governing AI use.

Georgieva stated that globally, there have been weaknesses in the regulation and ethics category and this area is one that defines whether AI ultimately benefits or harms societies.

“The regulatory ethical foundation for AI is still to come into place,” she said. 

She also warned about AI’s influence on financial markets. Days before the meeting, Georgieva warned that due to investor confidence in AI, market valuations are approaching levels last seen during the dot-com boom of the early 2000s. A sudden drop in confidence could drag down global growth and affect developing countries.

For emerging markets and developing nations, Georgieva stated that their first step should be investing in digital infrastructure and acquiring skills to ensure they can participate meaningfully in the AI-driven economy.

“The IMF is urging developing countries and emerging markets to focus on the first prerequisite for success — expanding digital infrastructure and skills,” she said. “Staying still is falling behind.”

“We must ensure that this technological revolution lifts all boats,” Georgieva said, “and not just the yachts.”

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