IMF warns AI investment slowdown could cut US output by 1.8% by 2028

The International Monetary Fund has cautioned that a slowdown in artificial intelligence investment could complicate central banks’ efforts to manage inflation, as new IMF scenarios project US economic output may fall 1.8% short of expectations by 2028 if current trends reverse. IMF Managing Director Kristalina Georgieva addressed policymakers in Washington on November 6, outlining how any weakness in AI-fueled growth would need to be closely watched when setting monetary policy. Her remarks followed a pronounced selloff in technology stocks that intensified questions about the sustainability of massive AI infrastructure investment. Georgieva has previously described investment in artificial intelligence as a vital engine for economic expansion.

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