International Monetary Fund (IMF) Managing Director Kristalina Georgieva has warned that the world lacks the regulatory and ethical foundations necessary to manage the rapid rise of artificial intelligence (AI) — calling on civil society to “ring the alarm bells.”
Speaking at the opening of the IMF and World Bank annual meetings on Monday (Oct 13), Georgieva said the AI revolution is advancing unevenly, with advanced economies like the United States taking the lead while developing nations struggle to keep pace.
“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 economies, including China, are building strong AI capabilities, most developing countries lack the digital infrastructure, skilled labor, and innovation capacity needed to benefit from the technology.
She said the IMF is advising countries to prioritize digital foundations—such as education, connectivity, and skills training—before attempting to integrate AI systems into their economies.
Last week, Georgieva also cautioned that global markets are showing signs of “AI-driven exuberance” reminiscent of the tech boom 25 years ago, warning that a sudden downturn in investor confidence could slow global growth, particularly in poorer nations.
Lagging on Ethics and Regulation
The IMF has introduced an AI Preparedness Index that evaluates countries’ readiness across 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 and ethical foundation for AI that our future depends on is still missing.”
She urged civil society groups to play a stronger role in ensuring that AI development serves the public interest and not merely profit or power.
“Ring the alarm bells in your countries that staying still is falling behind,” she concluded.
