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Georgieva urges countries to develop policies embedded in AI

by Honesty Victor
October 16, 2026
Reading Time: 2 mins read
Georgieva urges countries to develop policies embedded in AI
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Managing Director of the International Monetary Fund, ​Kristalina Georgieva, has urged governments around the globe to formulate policies anchored in artificial intelligence.

Admitting AI growth in advanced economies may be more than double the increase in low-income countries due to preparedness and adoption, ​the IMF MD said.

“Countries need policies that are grounded in the unique characteristics of AI,​ but agile enough to account for its uncertain path and rapid pace of change,” ​Georgieva stated in an article ​put out ​on Thursday.

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​​​The publication, which coincided with the ongoing 2026 ​IMF-World Bank Annual Meetings ​in Thailand​, emphasized that reliable digital infrastructure and a skilled workforce ​are vital for successful​ AI​ adoption.

Additionally, more energy infrastructure​ is required to support AI deployment, ​with ​data centers ​expected to account for 3% of global electricity consumption​ by 2030, according to the International Energy Agency​.

Advocating earnest preparation, ​Georgieva highlighted “three core principles” that could guide governments as they develop AI-tailored plans that would benefit their people and systems.

Policymakers were advised to “safeguard macroeconomic and financial stability,” while regulators and supervisors use existing tools, including capital and concentration requirements, to manage financial system risks.

​​Georgieva urged governments and the private sector ​t​o swiftly scale up their cyber defenses​, adding that Central Banks can ​enhance security through resilience testing of banks​.

​”Governments should reexamine their medium-term plans through the lens of the AI transition… invest in infrastructure and skills​,” the essay reads. “They will need tax systems designed for the AI era.​”

​Under the “adoption and innovation​” principle, ​​​Georgieva said that private capital could be complemented by public-sector investments in AI research and development. ​​

​She cited Sub-Saharan Africa, ​where mobilizing private finance for AI infrastructure entails both strengthening the business climate and providing targeted government subsidies and guarantees.

The IMF chief insists companies must be able to reorganize and reallocate resources so AI measurably improves their business​: ​”A dynamic AI economy should allow the smooth entry and exit of firms​.”

Nations were encouraged to address structural tax distortions that favor legacy investments by modernizing tax systems, reforming insolvency regimes, and improving legal certainty.

Georgieva further suggests policies that “support workers and create opportunities​,” stressing the importance of equi​p​ing people​ with cognitive, creative, and technical skills that empower them to use AI.

Acknowledging concerns about artificial intelligence, the economist believes AI holds the promise of a more productive world, where humans, aided by technology, achieve things never thought possible.

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