The Global Impact of AI: Mind the Gap Prepared by Eugenio Cerutti, Antonio Garcia Pascual, Yosuke Kido, Longji Li, Giovanni Melina, Marina M. Tavares, Philippe Wingender published by IMF (4/2025).
This paper examines the uneven global impact of AI, highlighting how its effects will be a function of (i) countries’ sectoral exposure to AI, (ii) their preparedness to integrate these technologies into their economies, and (iii) their access to essential data and technologies. We feed these three aspects into a multisector dynamic general equilibrium model of the global economy and show that AI will exacerbate crosscountry income inequality, disproportionately benefiting advanced economies. Indeed, the estimated growth impact in advanced economies could be more than double that in low-income countries. While improvements in AI preparedness and access can mitigate these disparities, they are unlikely to fully offset them. Moreover, the AI-driven productivity gains could reduce the traditional role of exchange rate adjustments due to AI’s large impact in the non-tradable sector—a mechanism akin to an inverse Balassa-Samuelson effect.