IMF: AI may increase Europe's productivity by 1%

The International Monetary Fund has stated that artificial intelligence could boost Europe's productivity by approximately 1% over five years, cautioning about an uneven distribution of benefits and risks among European countries and regions. The expanding use of artificial intelligence is leading to increased electricity consumption, especially in major data centers in Frankfurt, London, Amsterdam, and Paris, highlighting the need for the European Union to invest in cross-border infrastructure for electricity grids and to enhance the integration of the energy market. The IMF also warned of the potential emergence of a strategic dependency for Europe due to the dominance of the United States and China in developing AI models, urging significant investments to reduce reliance on foreign technology. The study indicates that the benefits of AI will be greatest in the more advanced economies within the EU, while workers face the risk of job losses, particularly as automation continues to increase.

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