The International Monetary Fund (IMF) says Artificial Intelligence (AI) could significantly transform productivity, investment, labour markets and economic policy 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, while AI-related technology investments contributed an estimated 0.5 percentage point to United States GDP growth in 2025.
It said AI-driven productivity gains could accelerate as global spending shifts toward deploying the technology across industries and occupations.
The IMF noted that Asia was actively pursuing AI opportunities, with Singapore ranking highest on its AI Preparedness Index due to its digital infrastructure, education and forward-looking regulation.
However, the fund warned that rapid AI adoption could disrupt labour markets, including through job displacement and wage declines for some workers.
It said workers with AI-related skills earned more, while middle-skilled workers whose jobs were highly exposed to automation risked being left behind.
The IMF also warned businesses about the risks of heavy, debt-financed AI investment, saying disappointing returns could trigger sharp declines in equity valuations, wealth destruction and layoffs.
It said circular financing arrangements among firms in the AI ecosystem could further increase systemic risks by allowing problems in one company to spread to others.
The fund said it was helping member countries navigate the evolving AI landscape through indexes covering national preparedness, skill readiness and skill imbalance, while providing advice on policies to help workers adapt and manage economic and financial risks.
The report identified rising public debt, trade reorientation and digital currencies as other major forces shaping the global economy.
