When Bretton Woods Institutions sound the alarm, will AI investors and corporations finally stop their relentless rapacity and pay attention?
Speaking at the International Monetary Fund (IMF) and World Bank annual meetings on 13 Oct 2025, IMF Managing Director Kristalina Georgieva has opined that most countries lack the ethical and regulatory structures needed to manage the rapid expansion of AI.
Georgieva noted that the AI revolution is widening the gap between advanced and developing economies. Wealthier nations such as the USA lead in innovation and investment, while poorer countries struggle with inadequate digital infrastructure and a shortage of skilled labor.
Even though some emerging markets like China have built strong AI capabilities, most low-income nations trail far behind, making it harder for them to catch up economically.
Urging civil society groups to “ring the alarm bells” over the risks of uneven AI development, Georgieva said the IMF is advising governments to prioritize digital foundations (education, internet connectivity, and data infrastructure) before seeking to deploy AI technologies. Without such groundwork, she said, the leap into AI could deepen inequality rather than alleviate it. She has also cautioned that global financial markets are showing signs of “AI-driven exuberance”, reminiscent of the late-1990s tech boom. A sudden market correction sparked by overvaluation in AI industries could disrupt global growth, particularly in vulnerable economies.
To assess global preparedness, the IMF recently developed an AI Preparedness Index, measuring countries across four dimensions: infrastructure, labor and skills, innovation, and regulation and ethics. Georgieva said the world’s weakest performance lies in the last category: ethics and regulation. This remains largely underdeveloped across both rich and poor nations.
She underscored that policymakers, private firms, and citizens share responsibility in guiding AI toward equitable outcomes. “The regulatory ethical foundation for AI for our future is still to come into place,” she said, emphasizing the need for oversight to ensure AI serves the public good.
In recent years, numerous other experts and organizations have also issued similar warnings, frequently highlighting that ethical oversight and regulatory frameworks for AI are lagging globally despite the rapid pace of technological adoption.
