Artificial Intelligence Could Bring Prosperity or Chaos, IMF Warns

COLOMBO (News 1st); International Monetary Fund Managing Director Kristalina Georgieva has called on governments around the world to accelerate preparations for the rapid expansion of artificial intelligence, warning that while AI offers enormous opportunities, it also presents significant risks to economies, jobs and financial systems.

Speaking on the growing influence of AI, Georgieva said countries need to adopt different approaches depending on whether they are providers, suppliers or users of artificial intelligence technologies.

She noted that simple AI tools accessible through smartphones have the potential to democratize access to knowledge and technology, making the benefits of innovation available to a much broader segment of society.

Quoting science fiction author William Gibson, Georgieva said, "The future is already here, it's just not evenly distributed," stressing that policymakers must work to ensure the benefits of AI are shared more widely across countries and communities.

At the same time, she cautioned that nations must prepare for the substantial risks associated with artificial intelligence, including youth unemployment, erosion of tax revenues and threats to financial stability.

The IMF chief identified cyber risk as one of the most serious concerns, warning that AI-powered cyber threats could trigger financial turmoil, disrupt critical infrastructure and create far-reaching economic consequences.

According to Georgieva, the number of cyberattacks is increasing at an exponential rate, while the time between the discovery of vulnerabilities and their exploitation is shrinking dramatically from months to hours and could soon fall to just minutes.

She said the world is now engaged in a race to ensure that those seeking to protect digital systems remain ahead of cyber criminals and other malicious actors exploiting new technologies.

Georgieva further warned that because artificial intelligence operates across borders, vulnerabilities in one country can pose risks to many others. As a result, strengthening cyber resilience and regulatory oversight has become a matter of global importance.

She stressed that a borderless AI ecosystem may ultimately be only as strong as its weakest link and called for greater international cooperation to ensure supervisory authorities are equipped to manage the risks associated with rapidly evolving technologies.