In a keynote discussion at a major forum in Dubai, Kristalina Georgieva — Managing Director of the IMF — highlighted how artificial intelligence (AI) is rapidly transforming economies and labor markets worldwide. Citing a recent Microsoft report that shows the UAE leads globally in AI use among working‑age adults, Georgieva emphasized that significant investments in digital infrastructure and human capital have positioned the Gulf region as a major hub for AI innovation. She noted that, with the right policy measures, AI could boost global productivity and economic growth beyond levels seen before the COVID‑19 pandemic.
Despite AI’s promise, Georgieva cautioned that disruption is inevitable — especially in labor markets. She pointed to IMF estimates suggesting that around 40 % of jobs globally could be affected by AI through job transformation or displacement, with advanced economies facing even higher impacts. While workers with in‑demand skills may benefit from higher productivity and wages, those in middle‑skill roles could be squeezed, underscoring the importance of proactive labor and education policies to manage the transition effectively.
Georgieva argued that policy frameworks will play a decisive role in determining who benefits from AI and who may be left behind. She stressed that countries with strong digital infrastructure, robust regulatory systems, and skilled workforces are more likely to harness AI’s full potential. In contrast, nations that lag in these areas risk falling further behind, deepening global economic disparities. To avoid such outcomes, she called for macroeconomic policies that support innovation while ensuring equitable access and opportunity.
Finally, she highlighted the need for international cooperation and well‑designed governance frameworks. As AI becomes more integrated across sectors, coordinated efforts among governments, researchers, and industry stakeholders will be essential to share data, transfer knowledge, and develop shared standards. Georgieva underscored that while AI’s transformative power is “unstoppable,” its benefits will only be maximized if countries collaborate on policies that manage risks and promote inclusive growth.
