Broadening the Gains from Generative AI: The Role of Fiscal Policies

Author/Editor:

Fernanda Brollo ; Era Dabla-Norris ; Ruud de Mooij ; Daniel Garcia-Macia ; Tibor Hanappi ; Li Liu ; Anh D. M. Nguyen

Publication Date:

June 17, 2024

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Staff Discussion Note represents the views of the authors and does not necessarily represent IMF views or IMF policy. The views expressed herein should be attributed to the authors and not to the IMF, its Executive Board, or its management. Staff Discussion Notes are published to elicit comments and to further debate.

Summary:

Generative artificial intelligence (gen AI) holds immense potential to boost productivity growth and advance public service delivery, but it also raises profound concerns about massive labor disruptions and rising inequality. This note discusses how fiscal policies can be employed to steer the technology and its deployment in ways that serve humanity best while cushioning the negative labor market and distributional effects to broaden the gains. Given the vast uncertainty about the nature, impact, and speed of developments in gen AI, governments should take an agile approach that prepares them for both business as usual and highly disruptive scenarios.

Series:

Staff Discussion Notes No. 2024/002

Subject:

Frequency:

occasional

English

Publication Date:

June 17, 2024

ISBN/ISSN:

9798400277177/2617-6750

Stock No:

SDNEA2024002

Format:

Paper

Pages:

47

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