BANGKOK, Oct 16 – Global economic leaders are weighing the opportunities and dangers of artificial intelligence as International Monetary Fund (IMF) and World Bank meetings bring growing concerns about economic stability, employment and unequal access to technology into focus. While AI could improve productivity, stimulate investment and create new industries, officials and technology experts are warning that stronger safeguards are needed to prevent its rapid development from causing widespread disruption.
IMF Managing Director Kristalina Georgieva called for urgent measures to manage the risks associated with artificial intelligence, comparing the technology’s rapid progress to a Formula 1 racing car that could cause serious harm if it went out of control. Speaking on Friday during a panel discussion in Bangkok, she stressed that innovation should continue, but governments and technology companies must ensure that its benefits do not come at the expense of public safety.
The discussion brought together policymakers and industry representatives, including Jack Clark, co-founder and head of policy at artificial intelligence company Anthropic, to examine how AI could reshape the global economy. Their remarks highlighted a growing challenge for governments: encouraging technological progress while preparing workers, businesses and public institutions for changes that could arrive faster than existing policies can accommodate.
AI Regulation Emerges as an Urgent Global Priority
Georgieva acknowledged the potential contribution of artificial intelligence to humanity but warned that its benefits could be undermined if its development proceeds without effective safeguards. She argued that the global race to build increasingly capable systems needs clear boundaries to prevent potentially harmful consequences.
Her comparison with a high-speed racing car reflected concerns that AI development is moving ahead rapidly while the rules governing its use remain insufficient. As companies compete to produce more powerful systems, policymakers face pressure to establish standards that protect the public without unnecessarily restricting innovation.
Clark expressed even greater concern, describing the situation as a Formula 1 race taking place at night, with drivers potentially lacking adequate brakes. He questioned why ordinary consumer products, including toys purchased for children, face stricter regulation than some of the advanced AI systems being developed today.
The Anthropic executive has advocated stronger cooperation among leading technology companies and governments. Last month, his company proposed that major artificial intelligence developers consider a coordinated approach to pausing the development of advanced systems if necessary to address growing safety concerns.
The proposal reflects wider debate within the technology industry over whether increasingly capable AI could eventually become difficult for humans to control. Although the pace and consequences of future advances remain uncertain, concerns about oversight have become more prominent as developers introduce systems capable of handling increasingly complex tasks.
Clark said efforts to establish policy frameworks were gaining momentum, expressing confidence that governments and companies could manage the risks if they treated the issue seriously. However, he warned that leaving decisions entirely in the hands of private companies would be inadequate.
Without meaningful public oversight and cooperation, he said, negligence could lead to serious disruption. His comments underscored the need for governments to participate directly in decisions about how advanced AI is developed, tested and deployed.
AI Could Transform Employment and Widen Economic Divisions
The economic consequences of artificial intelligence were another major focus of the discussion, particularly its uncertain effects on employment. Although AI could create new opportunities and increase productivity, its impact is likely to vary significantly across industries and income groups.
Georgieva outlined three broad employment trends identified in an IMF study. One involves jobs being transformed by AI or new positions emerging as businesses adopt the technology. Another concerns repetitive tasks and occupations that could disappear as automated systems take over work previously performed by people.
The third trend involves the growth of service-sector employment supported by spending from people and businesses benefiting from the AI investment boom.
Georgieva suggested that the overall effect on employment could be positive. However, she cautioned that the quality of newly created jobs matters as much as the number of positions available.
She raised concerns that young people who might otherwise have pursued professional careers involving routine office work could find themselves moving into lower-paid service jobs, including positions serving coffee in establishments such as Starbucks.
Such a shift could create a mismatch between the qualifications and ambitions of younger workers and the opportunities available to them. Even if the economy generates employment overall, workers could face lower wages, fewer career development opportunities or difficulty finding positions that match their skills.
The transition could be particularly challenging for people entering the workforce at a time when businesses are increasingly using AI to perform administrative, analytical and other routine tasks. Workers may need new technical skills, while employers and governments could face pressure to expand training programmes and support people whose existing roles become less valuable.
The IMF’s assessment highlights a central uncertainty surrounding AI adoption: increased economic output does not automatically translate into improved living standards for every household.
Bank of Canada Governor Warns of Winners and Losers
Tiff Macklem, governor of the Bank of Canada, compared the potential effects of artificial intelligence with the economic consequences of expanding international trade.
Greater trade between countries has generated substantial global wealth and helped lift millions of people out of poverty. However, it has also imposed significant costs on workers and communities when manufacturing jobs moved to China and other developing economies.
Macklem said technological change could produce a similar pattern, creating broad economic gains while leaving some workers struggling to adapt.
He argued that governments must find ways to assist people who lose their livelihoods during periods of economic transformation. Without effective support, those affected may become increasingly frustrated with the policies and economic systems driving the changes.
The comparison is particularly relevant as businesses assess how AI could affect hiring decisions, workplace productivity and the distribution of income. Companies that successfully integrate the technology may become more competitive, while workers in occupations vulnerable to automation could face uncertainty about their futures.
Support measures could become increasingly important as policymakers seek to ensure that economic gains are shared more widely. Retraining opportunities, employment assistance and policies that help displaced workers transition into new roles could influence whether AI adoption produces lasting public benefits or intensifies existing economic divisions.
Macklem’s comments also pointed to a political risk. When people experience the costs of economic change without seeing its benefits, public resistance can grow, making it more difficult for governments to maintain support for policies intended to encourage growth.
Access to Electricity and Digital Networks Remains Essential
The benefits of artificial intelligence will also depend on whether countries and communities have the infrastructure needed to use it.
Georgieva stressed that access to electricity and digital networks is essential if AI is to benefit the widest possible population. Reliable power supplies and internet connectivity remain fundamental requirements for businesses, schools, public services and individuals seeking to use advanced digital tools.
Countries with limited infrastructure could struggle to take advantage of the technology, potentially widening the gap between wealthy economies and developing nations.
Cybersecurity is another important consideration as AI becomes more deeply integrated into economic and public life. Greater reliance on digital systems increases the importance of protecting networks, information and essential services from malicious activity.
These challenges extend beyond the development of AI itself. Governments must consider whether their populations have the resources, connectivity and digital skills needed to participate in an economy increasingly shaped by automation and advanced computing.
The concerns discussed in Bangkok also coincided with peaceful demonstrations in the city on Thursday and Friday. Dozens of people marched to draw attention to growing inequality and other public frustrations, reflecting broader concerns about how economic growth and technological change affect ordinary people.
Although the protests were separate from the panel discussion, the issues raised by demonstrators echoed questions confronting policymakers: who benefits from economic progress, who bears its costs and what measures are needed to prevent existing inequalities from deepening?
IMF Chief Calls for More Accessible and User-Friendly AI
Beyond regulation and employment, the panel also explored how artificial intelligence is already being used in everyday life.
Georgieva revealed that she had used AI to monitor her calorie intake and support her efforts to lose weight, illustrating how the technology can serve practical personal needs beyond corporate and industrial applications.
However, she also joked about the behaviour of AI agents, saying she would like them to become more polite. Her remarks offered a lighter moment during a discussion otherwise dominated by concerns about safety, employment and economic disruption.
Clark responded by describing the challenge of adjusting AI systems between excessive agreement and outright rudeness. His comments highlighted a different aspect of AI development: improving how systems communicate with users as they become more widely integrated into daily routines.
The exchange illustrated that the future of AI will depend not only on technical capabilities and economic performance but also on whether people find the technology reliable, useful and appropriate for their needs.
As discussions continue among international financial institutions, governments and technology companies, the challenge will be to establish rules that allow innovation to advance while addressing the risks it creates. Artificial intelligence could become a significant source of economic growth, but its long-term value will depend on how effectively societies manage its effects on jobs, inequality, safety and access to opportunity.