Technological Progress, Artificial Intelligence, and Inclusive Growth
Prepared by Anton Korinek (University of Virginia), Martin Schindler (IMF), and Joseph E. Stiglitz (Columbia University)
Authorized for distribution by Valerie Cerra1
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Advances in artificial intelligence and automation have the potential to be labor-saving and to increase inequality and poverty around the globe. They also give rise to winner-takes-all dynamics that advantage highly skilled individuals and countries that are at the forefront of technological progress. We analyze the economic forces behind these developments and delineate domestic economic policies to mitigate the adverse effects while leveraging the potential gains from technological advances. We also propose reforms to the global system of governance that make the benefits of advances in artificial intelligence more inclusive.
JEL Classification Numbers: E0, O1, O3
Keywords: Artificial Intelligence; Inclusive Growth; Economic Development