Countries around the world lack the regulatory and ethical foundations needed to manage the rapid rise of artificial intelligence (AI), International Monetary Fund (IMF) chief Kristalina Georgieva said on Monday (Oct 13), urging civil society groups to “ring the alarm bells.”

Speaking at the opening of the annual IMF and World Bank meetings, Georgieva warned that the AI revolution was unfolding unevenly, with advanced economies like the United States dominating the field, while developing nations risk being left behind.

“The IMF is quite worried that the gap between advanced economies and low-income countries on readiness for AI is growing,” she said. “It is making it harder and harder for developing countries to catch up.”

GROWING INEQUALITY IN AI READINESS

Georgieva noted that while some emerging markets such as China had developed AI capabilities, most developing countries lacked the digital infrastructure and skilled labor needed to harness its potential.

She said the IMF was advising countries to focus first on building strong digital foundations, including education and connectivity, before attempting to adopt AI technologies.

Last week, Georgieva cautioned that global financial markets were showing signs of “AI-driven exuberance” similar to the tech boom 25 years ago, warning that a sharp reversal in sentiment could hurt world growth, particularly in poorer economies.

LAGGING ON ETHICS AND REGULATION

The IMF has created an AI preparedness index that assesses national readiness in four key areas: infrastructure, labor and skills, innovation, and regulation and ethics.

“Where the world is falling shortest is on regulation and ethics,” Georgieva said. “The regulatory ethical foundation for AI for our future is still to come into place.”

She called on civil society to act as a watchdog to ensure AI development serves the public good.

“Ring the alarm bells in your countries that staying still is falling behind,” she said.

Source: Reuters

- Agencies