IMF tells EU ministers AI could boost growth but increase economic strains
The IMF said about 60% of workers in advanced European economies are exposed to AI, while data centres already use roughly 3% of Europe’s electricity.
- In Dublin, the International Monetary Fund presented a paper to European Union finance ministers on Sept 18-19, stating artificial intelligence could lift European productivity by about 1% over five years while posing significant economic risks.
- The IMF estimated that around 60% of workers in advanced European economies face high exposure to artificial intelligence, with more advanced economies expected to benefit disproportionately while others risk job displacement.
- Major technology hubs including Frankfurt, London, Amsterdam, Paris, and Dublin face pressure as data centers already consume roughly 3% of the continent's electricity, with demand rising sharply as artificial intelligence adoption expands.
- Europe risks developing strategic dependencies because China dominates artificial intelligence model development, prompting the IMF to recommend completing the European Union single market to spread AI gains across the 27-nation bloc.
- Echoing concerns from the European Commission and European Central Bank President Mario Draghi, the IMF urged investment in cross-border grid infrastructure to address fragmented capital, labour and energy markets holding back innovation.
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The International Monetary Fund (IMF) warned in a background paper prepared for an informal meeting of EU finance ministers in Dublin that while artificial intelligence could increase European productivity by around 1 percent over five years, the spread of the technology could deepen inequalities, overburden energy networks, and increase dependence on foreign technologies – unless member states deepen economic integration.
Artificial intelligence can increase European productivity by about 1% over five years, but presents the risk of widening inequality, overloading electricity networks and increasing dependence on foreign technology, unless governments deepen economic integration, according to a study by the International Monetary Fund. The briefing note, prepared for an informal meeting of EU finance ministers in Dublin on 18 and 19 September, stated that AI's b…
IMF tells EU ministers AI could boost growth but increase economic strains
Artificial intelligence could lift European productivity by about 1% over five years, but risks widening inequality, straining power networks and increasing dependence on foreign technology unless governments deepen economic integration, an International Monetary Fund paper said.
Artificial intelligence could boost European productivity by around 1% over five years, but it risks widening inequalities, straining electricity grids and… IMF to EU: Around 60% of workers are employed in occupations particularly exposed to AI - ΙΝΑΦΤΕΜΟΠΟΡΙΚΙ
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