Governments play a pivotal role in navigating the dual impacts of artificial intelligence (AI) on economies—enhancing productivity and exacerbating inequality. AI stands poised to transform job markets globally, with potential job losses of 33% in advanced economies, 24% in emerging economies, and 18% in low-income countries, while also offering productivity gains and new job opportunities, particularly in digitally advanced economies.
The IMF’s AI Preparedness Index Dashboard assesses 174 economies on digital infrastructure, human capital, innovation, and regulation readiness, underscoring the need for robust policies. Advanced economies should bolster social safety nets, train workers in digital skills, and regulate AI use, while developing economies must invest in digital infrastructure and workforce training to harness AI’s benefits effectively.