The International Monetary Fund (IMF) said artificial intelligence is supporting the global economy through the technology-driven investment boom, but its latest forecasts do not yet assume any productivity gains from AI, while inflation risks remain elevated.
AI Investment Offsets Geopolitical Headwinds In its July World Economic Outlook update, the IMF said the global economy is being shaped by two opposing forces: the lingering effects of the conflict involving Iran and an AI-driven investment boom.
The IMF projected global growth of 3% in 2026 and 3.4% in 2027, down from the 3.5% average recorded in 2024 – 2025, while the outlook was broadly unchanged from its April forecast on a cumulative basis.
Its baseline assumes the AI-driven technology cycle moderates from current levels and includes no exogenous boost to productivity from AI, while adding that faster AI adoption could lift growth beyond the baseline forecast.
The Federal Reserve's June policy meeting cited "AI-related price pressures" as one factor behind higher core goods inflation.
