AI's Economic Boost Outweighs Emission Challenges

The IMF reports that artificial intelligence will boost global output by 0.5% annually from 2025 to 2030, despite increased carbon emissions from data center operations. Policymakers are urged to mitigate societal costs as energy demands surge. AI may yet drive energy efficiency gains if utilized sustainably.

Artificial intelligence is set to enhance global economic output by approximately 0.5% each year from 2025 to 2030, the International Monetary Fund revealed on Tuesday. This boost is expected to surpass the environmental cost associated with higher carbon emissions from AI model data centers, according to a report presented at the IMF's annual spring meeting in Washington.

The study, titled "Power Hungry: How AI Will Drive Energy Demand," highlights the potential for a widening wealth gap, as these economic benefits will not be evenly distributed worldwide. The IMF advises policymakers and businesses to adopt strategies that protect broader social interests.

While AI adoption is projected to significantly increase energy demands, the Grantham Research Institute notes that AI could also accelerate progress in low-carbon technologies if deliberately directed. Roberta Pierfederici from Grantham emphasizes the need for active involvement from governments and tech firms to ensure AI's equitable and sustainable deployment.

(With inputs from agencies.)