IMF Says AI Could Leave Developing Countries Behind as United States May Dominate Benefits

• IMF warns developing countries falling behind in AI — urgent action needed on infrastructure, skills and regulation.

• The IMF’s AI Preparedness Index evaluates countries on infrastructure, labor and skills, innovation capacity, and laws and governance.

• Official IMF commentary highlights that advanced economies hold a disproportionate share of AI capabilities; many low-income countries rank lowest on readiness.

IMF warns developing countries falling behind in AI: Georgieva urges investment in digital infrastructure, skills, and regulation to close the AI readiness gap.

What is the IMF’s warning about developing countries falling behind in AI?

IMF warns developing countries falling behind in AI as Kristalina Georgieva highlighted at the IMF and World Bank Annual Meetings. The IMF warns the benefits of AI risk concentrating in wealthier countries unless low-income nations rapidly expand digital infrastructure, train workforces, and adopt governance frameworks to manage ethical and market risks.

How does the IMF assess national AI readiness?

The IMF’s AI Preparedness Index assesses readiness across four categories: infrastructure, labor and skills, innovation and technology adaptation, and laws, supervision and ethical standards. Official IMF data show significant variation between advanced economies and low-income countries. Georgieva stressed that regulatory and ethical frameworks are the weakest area globally and crucial for whether AI delivers inclusive growth.

Frequently Asked Questions

How can low-income countries improve AI readiness according to the IMF?

The IMF recommends prioritizing digital infrastructure investments, expanding access to high-quality digital education and vocational training, and strengthening legal and regulatory frameworks for AI. Practical steps include broadband expansion, public–private partnerships for skills programs, and adopting clear governance and ethics standards to attract responsible investment.

Why is the IMF concerned about AI and market valuations?

The IMF warns that investor enthusiasm for AI has pushed valuations toward levels seen in the dot-com era, increasing the risk of a sharp correction. Georgieva cautioned that a sudden drop in confidence could slow global growth and disproportionately harm developing economies with limited buffers and fiscal capacity.

Key Takeaways

• Urgent investment required: Developing countries need faster deployment of digital infrastructure to access AI-driven opportunities.
• Skills and governance matter: Workforce training and robust regulatory frameworks determine whether AI amplifies or mitigates inequality.
• Global coordination is essential: National action supported by international cooperation can reduce the risk of an irreversible AI divide.

Conclusion

IMF Managing Director Kristalina Georgieva’s public warning underscores that IMF warns developing countries falling behind in AI is not only a technological challenge but a policy one. Official IMF analysis via the AI Preparedness Index points to infrastructure, skills, innovation capacity and governance as decisive factors. Policymakers must act now, prioritizing investments and regulatory frameworks to ensure AI advances support broad-based economic development. Published: 14 October 2025. Updated: 14 October 2025. Author: COINOTAG.