International Monetary Fund Managing Director Kristalina Georgieva has warned that artificial intelligence could create more risks than opportunities if governments and technology companies fail to build adequate safeguards around its development.
Speaking during the IMF and World Bank annual meetings in Bangkok, Georgieva called for an ethical framework around AI and backed a combination of industry self-regulation and government oversight.
Her warning comes as AI investment is supporting economic growth in several countries while simultaneously raising concerns over jobs, financial markets, cybersecurity and unequal access to the technology.
FCRF Launches CP-FRM to Build India’s Next Generation of Fraud Risk Professionals
Georgieva Says AI Race Needs ‘Brakes’
Georgieva compared the rapid development of AI to driving a Formula One car at night without proper brakes.
The comparison reflects a growing concern among policymakers that AI capabilities are advancing faster than the rules designed to govern them.
Georgieva said companies developing advanced models have an important responsibility to build safeguards themselves.
But she argued that voluntary action cannot be the only defence.
Governments also need to participate in setting rules, especially as AI becomes more deeply embedded in financial systems, workplaces and critical infrastructure.
Anthropic co-founder and policy chief Jack Clark, who participated in the same IMF discussion, also argued that safety standards should not remain entirely voluntary.
The debate has intensified as AI systems gain greater ability to write software, interact with external tools and perform multi-step tasks with less human supervision.
AI Is Already Supporting Global Growth
The IMF is not arguing that governments should slow AI development altogether.
Its own research shows that the technology is already supporting investment, trade and economic activity.
Georgieva said economies closely connected to the AI supply chain have generally performed better during a period marked by geopolitical conflict, high energy prices and persistent uncertainty.
Many of those economies are in Asia.
The IMF has previously said strong demand for semiconductors, computing infrastructure and other AI-related goods helped boost global trade and benefited countries including China and India.
But the economic gains remain uneven.
Countries without reliable electricity, digital infrastructure, computing capacity or skilled workers may struggle to capture the same benefits.
That could widen the gap between economies able to deploy advanced AI and those that remain dependent on technology developed elsewhere.
Georgieva said basic infrastructure and access to electricity are therefore essential if the technology is to benefit a broader share of the global population.
Jobs and Financial Markets Add to the Risk
Labour disruption remains one of the IMF’s biggest concerns.
AI could increase worker productivity and create new industries, but it could also automate parts of existing jobs faster than workers can adapt.
The effects are unlikely to be evenly distributed.
Higher-skilled workers who can use AI effectively may benefit from greater productivity, while people performing more easily automated tasks could face greater pressure on wages and employment.
Financial markets create another layer of risk.
The420.in reported earlier this week that the IMF sees a possible reversal in AI investment as one of the major threats facing global markets.
Technology companies and data-centre operators are spending heavily on chips, electricity and computing infrastructure based on expectations that AI will generate substantial future profits.
If those productivity gains take longer than expected, investors could reassess highly valued AI companies and infrastructure projects.
A sharp correction could become more serious because companies are increasingly borrowing to fund that investment.
The IMF has also warned that AI can strengthen cyber defences while simultaneously making cyberattacks faster and easier to automate.
Regulators Face a Global Coordination Problem
AI regulation is developing unevenly around the world.
The European Union has introduced a detailed AI Act, while the United States has relied more heavily on sector-specific rules and voluntary industry commitments.
Other countries are still building their regulatory frameworks.
That fragmentation matters because advanced AI systems can be developed in one country and used almost instantly in another.
A safety failure therefore may not remain inside the jurisdiction where the model was created.
Researchers and technology executives have increasingly called for international cooperation, independent safety testing and clearer reporting requirements when serious AI incidents occur.
Georgieva’s warning places the IMF firmly inside that wider policy debate.
The Fund’s position is increasingly clear: AI could deliver major productivity and economic gains, but those benefits cannot be assumed.
Without effective safeguards, investment in infrastructure and policies that help workers adjust, the same technology could deepen inequality and create new financial and security risks.
What this means for you:
AI may improve productivity and services, but its benefits will depend heavily on how governments and companies manage job disruption, cybersecurity and safety. Workers should increasingly focus on skills that complement AI rather than tasks the technology can easily automate.
Follow for daily updates on cybercrime, corporate fraud, DFIR, hacking, investigations, and digital forensics
