AI could add up to 1 percentage point to Asia's growth annually, offset ageing drag: IMF

According to a recent report from the International Monetary Fund (IMF), the integration of artificial intelligence and related technologies could significantly bolster economic growth across Asia. The analysis suggests that AI adoption has the potential to increase annual economic growth in the region by between 0.2 and 1 percentage point.

Economists at the IMF indicate that these gains are particularly vital as many Asian nations face the dual challenge of aging populations and slowing labor force growth. By enhancing productivity and automating routine tasks, AI could serve as a critical offset to the drag caused by demographic shifts, helping to maintain long-term economic stability.

The findings highlight a growing consensus among international financial institutions that the digital transition is no longer merely a sector-specific trend but a macroeconomic imperative. As countries in the region continue to invest in digital infrastructure and workforce upskilling, the IMF suggests that the scale of these economic benefits will largely depend on the speed and efficacy of policy implementation and regulatory frameworks.

While the report acknowledges that the transition may present challenges, including potential labor market disruptions, the projected growth figures underscore the transformative potential of AI for the Asian economy. Policymakers are encouraged to focus on fostering innovation while ensuring that the benefits of technological advancement are distributed broadly across the workforce.