How Artificial Intelligence Could Widen Gap Between Rich & Poor Nations

Cristian Alonso is an economist in the IMF's Fiscal Affairs Department; Siddharth Kothari is an economist in the IMF's Asia and Pacific Department' Sidra Rehman is an economist in the IMF's Middle East and Central Asia Department. At a joint meeting of the UN's Economic and Social Council (ECOSOC) and its Economic and Social Committee, a robot named Sophia had an interactive session last year with Deputy Secretary-General Amina J. Mohammed. WASHINGTON DC, Dec 8 2020 (IPS) - New technologies like artificial intelligence (AI), machine learning, robotics, big data, and networks are expected to revolutionize production processes, but they could also have a major impact on developing economies. The opportunities and potential sources of growth that, for example, the United States and China enjoyed during their early stages of economic development are remarkably different from what Cambodia and Tanzania are facing in today's world. Our recent staff research finds that new technology risks widening the gap between rich and poor countries by shifting more investment to advanced economies where automation is already established.