Broadening the Gains from Generative AI: The Role of Fiscal Policies
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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:
Artificial intelligence Automation Capital income Corporate income tax Economic sectors Financial crises Labor Labor markets National accounts Taxes Technology
Frequency:
occasional
English
Publication Date:
June 17, 2024
ISBN/ISSN:
9798400277177/2617-6750
Stock No:
SDNEA2024002
Format:
Paper
Pages:
47
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