Bangkok – The International Monetary Fund (IMF) highlighted AI’s potential to soften the impact of a rapidly aging workforce across Asia. Speaking at the launch of an IMF book on the region’s challenges, Managing Director Kristalina Georgieva said that artificial intelligence could lift growth in advanced Asian economies by between half a percentage point and one full point.

Productivity gains could balance demographic pressure

Georgieva explained that if countries capture the productivity gains from AI, they can more than offset the demographic pressure of shrinking labor pools. The IMF’s research shows that China, Japan and South Korea could lose nearly 25% of their working‑age population by 2050, a loss that AI‑driven productivity could help mitigate.

Policymakers urged to ensure equitable AI adoption

Krishna Srinivasan, director of the IMF’s Asia and Pacific department, cautioned that the benefits of AI must be balanced against the risk of widening gaps between nations. “What matters is whether AI augments workers or automates jobs,” he said. Advanced economies are more exposed to AI but also better positioned to reap its rewards, while emerging markets may struggle to capture the upside.

Srinivasan added that reforms to raise skills and productivity could accelerate AI adoption by a decade or more.

Trade integration also key to growth

Georgieva noted that deeper regional trade agreements and reduced non‑tariff barriers could raise Asia’s GDP by about 1.8% in the long run, further supporting the region’s economic resilience.

The IMF’s findings underscore the importance of coordinated policy, skill development, and inclusive AI strategies to sustain growth amid demographic challenges.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.