October 14, Colombo (LNW): The global community is unprepared for the pace and scale of artificial intelligence (AI) advancement, particularly when it comes to the ethical and regulatory challenges it presents, warned International Monetary Fund (IMF) Managing Director Kristalina Georgieva on October 13.
Speaking at the opening session of the joint IMF and World Bank annual meetings, Georgieva urged civil society organisations across the world to raise their voices and push governments to address the growing risks posed by unchecked AI development.
Highlighting the disparity in preparedness between wealthy and poorer nations, Georgieva stressed that while AI is progressing rapidly in advanced economies—most notably the United States—developing countries are struggling to keep pace. “The readiness gap is widening,” she said, “and this makes the road to digital inclusion steeper for many low-income countries.”
Although some emerging economies, such as China, are beginning to develop robust AI ecosystems, many others remain hindered by limited internet access, inadequate technological infrastructure, and a shortage of skilled professionals. The IMF, she said, has been advising governments in these regions to first invest in core digital foundations—including education systems, broadband connectivity, and human capital—before seeking to implement more sophisticated AI systems.
Georgieva also reiterated concerns she voiced earlier this month regarding speculative trends in financial markets, which she likened to the exuberance seen during the dot-com boom. She warned that AI-fuelled investment hype, if left unchecked, could trigger volatility and economic setbacks—particularly for vulnerable economies already lagging behind.
To help assess and address these disparities, the IMF has developed an AI preparedness index, which evaluates countries based on four pillars: digital infrastructure, workforce capabilities, innovation, and governance frameworks. Among these, the area where most countries are falling significantly short is the establishment of effective regulation and ethical guidelines.
“The ethical and regulatory backbone of AI is still missing in most of the world,” Georgieva said. “Without it, we risk letting a powerful technology develop in ways that may not align with the public good.”
She urged civil society groups to step in and hold both governments and the private sector to account. “Sound the alarm,” she said. “In the world of AI, standing still means falling behind.”
