{
  "title": "The Global Impact of AI: Mind the Gap",
  "publication": "IMF Working Papers, April 11, 2025",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2025/04/11/the-global-impact-of-ai-mind-the-gap-566129",
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  "summary": "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.",
  "sections": [
    {
      "heading": "Core framework and determinants",
      "content": "- AI effects are 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.\n- These three aspects are incorporated into a multi-sector dynamic general equilibrium model of the global economy."
    },
    {
      "heading": "Main findings",
      "content": "- AI will exacerbate cross-country income inequality, disproportionately benefiting advanced economies.\n- The estimated growth impact in advanced economies could be more than double that in low-income countries.\n- Improvements in AI preparedness and access can mitigate these disparities, but they are unlikely to fully offset them.\n- 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 described as akin to an inverse Balassa-Samuelson effect."
    },
    {
      "heading": "Analytical approach",
      "content": "- Model used: multi-sector dynamic general equilibrium (DSGE) model of the global economy.\n- Focus areas: sectoral exposure, preparedness, and access to data and technologies as channels shaping AI’s cross-country impact."
    },
    {
      "heading": "Policy implications and scenarios",
      "content": "- Enhancing AI preparedness and improving access to essential data and technologies are key mitigation levers.\n- Even with improvements in preparedness and access, disparities in growth impacts between advanced economies and low-income countries are likely to persist."
    },
    {
      "heading": "Key statistics and publication metadata",
      "content": "- Authors: Eugenio M Cerutti, Antonio I Garcia Pascual, Yosuke Kido, Longji Li, Giovanni Melina, Marina Mendes Tavares, Philippe Wingender\n- Publication date: April 11, 2025\n- Series: Working Paper No. 2025/076\n- Issue: 076\n- Volume: 2025\n- Pages: 33\n- DOI: https://doi.org/10.5089/9798229008570.001\n- ISBN: 9798229008570\n- ISSN: 1018-5941\n- Stock No: WPIEA2025076\n\nSource: The Global Impact of AI: Mind the Gap, IMF Working Papers (April 11, 2025).\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2025/04/11/the-global-impact-of-ai-mind-the-gap-566129"
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    "Authors: Eugenio M Cerutti, Antonio I Garcia Pascual, Yosuke Kido, Longji Li, Giovanni Melina, Marina Mendes Tavares, Philippe Wingender",
    "Published: April 11, 2025",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798229008570.001",
    "AI effects are 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.",
    "These three aspects are incorporated into a multi-sector dynamic general equilibrium model of the global economy.",
    "AI will exacerbate cross-country income inequality, disproportionately benefiting advanced economies.",
    "The estimated growth impact in advanced economies could be more than double that in low-income countries.",
    "Improvements in AI preparedness and access can mitigate these disparities, but they are unlikely to fully offset them.",
    "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 described as akin to an inverse Balassa-Samuelson effect.",
    "Model used: multi-sector dynamic general equilibrium (DSGE) model of the global economy.",
    "Focus areas: sectoral exposure, preparedness, and access to data and technologies as channels shaping AI’s cross-country impact.",
    "Enhancing AI preparedness and improving access to essential data and technologies are key mitigation levers.",
    "Even with improvements in preparedness and access, disparities in growth impacts between advanced economies and low-income countries are likely to persist.",
    "Authors: Eugenio M Cerutti, Antonio I Garcia Pascual, Yosuke Kido, Longji Li, Giovanni Melina, Marina Mendes Tavares, Philippe Wingender",
    "Publication date: April 11, 2025",
    "Series: Working Paper No. 2025/076",
    "Issue: 076",
    "Volume: 2025",
    "Pages: 33",
    "DOI: https://doi.org/10.5089/9798229008570.001",
    "ISBN: 9798229008570",
    "ISSN: 1018-5941",
    "Stock No: WPIEA2025076",
    "**Working Paper**"
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