The IMF's Georgieva says AI investment may outstrip railways and electricity grids, and warns hyperscaler borrowing could turn a disappointment into a far-reaching shock

IMF Managing Director Kristalina Georgieva used a speech in Singapore on 7 October, ahead of the autumn IMF–World Bank meetings in Bangkok, to put AI at the centre of the global outlook, the Associated Press reports.

“Love it, hate it or fear it, AI is here, rapidly becoming a key driver of countries’ relative fortunes in the world economy,” she said, according to AP. She said investment in AI is likely to exceed the relative scale of past spending on railways, electricity grids and telecommunications networks.

She also set out the risk. Should earnings fall short, AP reports her as saying, leverage at the hyperscalers and large and growing global holdings of US equities could turn a disappointment into a far-reaching shock. She urged governments to regulate AI, prepare workers and do more to curb debt.

The IMF's own text of the speech was not visible from here; the page found was a placeholder, so the quotation is AP's. The warning matters for investors because it comes from the lender of last resort to governments, a week before the Fund publishes its outlook and its financial stability report at the Bangkok meetings.

• Reported Georgieva said AI is rapidly becoming a key driver of countries' relative fortunes in the world economy. Associated Press (via KRCG)
• Reported She warned that, should earnings fall short, hyperscaler leverage and global holdings of US equities could turn a disappointment into a far-reaching shock. Associated Press (via BNN Bloomberg)