Fiscal Policy Interventions Could Make AI Benefits More Universal, IMF Says
Generative artificial intelligence technologies hold great potential for enhancing delivery of public services and improving productivity. However, the current scale and speed at which these technologies are being adopted is also increasing concerns about inequality and job loss. Despite this, the IMF recently published a paper claiming that fiscal policy had a significant role to play in supporting opportunities and gains under generative artificial intelligence. For this to be effective, however, tax and social protection systems globally would need to be upgraded. Models from the IMF, supported by lessons from previous automation waves, suggest that generous employment insurance could shield…