AI Infrastructure Investment Helps Sustain Global Growth

Artificial intelligence investment is becoming an increasingly important driver of global economic activity, helping offset pressure from energy supply disruptions. Speaking at the opening of the International Monetary Fund and World Bank meetings in Bangkok on Monday, IMF Managing Director Kristalina Georgieva said the AI investment boom was generating a substantial demand and investment shock that was supporting global growth at around 3%.

The IMF projected global economic growth of 3% for 2026 in its July outlook and was scheduled to publish an updated forecast on Tuesday. The new assessment will be closely watched for indications of whether technology investment can continue to counterbalance geopolitical risks and higher energy costs.

Georgieva described AI as a transformative technology with consequences extending beyond the technology sector. Investment in computing infrastructure, data centers and related equipment is creating demand across supply chains, potentially supporting economic activity even as other parts of the global economy face headwinds.

However, the durability of this contribution will depend on whether current spending translates into lasting productivity improvements and commercially sustainable returns.

Asia Emerges as a Major Beneficiary of AI Demand

Asian economies are positioned to benefit from the infrastructure expansion because many companies supplying the hardware required for AI development operate in the region. Georgieva estimated that AI investment could increase growth in advanced Asian economies by between 0.5 and 1 percentage point, while emerging Asian economies could see gains of 0.2 to 0.8 percentage point.

Thailand, the host of this year’s IMF and World Bank annual meetings, was cited as an example of an economy connected to the expanding AI hardware supply chain. The United States, China and India remain important producers within the broader AI ecosystem, while Asian manufacturers and infrastructure suppliers are helping meet growing demand.

These opportunities could support manufacturing, investment and export activity across the region. Nevertheless, the benefits are unlikely to be distributed evenly. Economies with stronger industrial capabilities, infrastructure and access to technology investment may capture more of the expansion than countries with limited participation in AI supply chains.

Employment Disruption Raises Questions for Policymakers

The economic outlook also carries significant labor-market implications. Georgieva said the IMF estimates that AI could augment, downgrade or eliminate approximately 40% of jobs over time. An initial study cited by her found that 10% of jobs in the United States already required AI skills.

The transition could create productivity gains while changing the types of workers and skills employers demand. Routine and repetitive roles may face declining demand, while opportunities could expand in areas supporting AI infrastructure and other technology-intensive activities. The report also noted growth in lower-paying employment in construction and data centers, illustrating that the benefits of the investment boom do not necessarily translate into uniformly higher-quality jobs.

World Bank President Ajay Banga highlighted the potential of smaller-scale AI applications to improve productivity in agriculture, healthcare and education, particularly in emerging markets. Singaporean President Tharman Shanmugaratnam, meanwhile, warned that declining demand for graduate entry-level positions could weaken the first step on the career ladder.