## The Global Impact of AI: Mind the Gap

_IMF Working Papers, April 11, 2025_

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## Bibliographic details
- 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

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### Core framework and determinants
- 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.

### Main findings
- 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.

### Analytical approach
- 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.

### Policy implications and scenarios
- 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.

### Key statistics and publication metadata
- 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

*Source: The Global Impact of AI: Mind the Gap, IMF Working Papers (April 11, 2025).*

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_Source: https://www.imf.org/en/publications/wp/issues/2025/04/11/the-global-impact-of-ai-mind-the-gap-566129_