Central banks must take account of any weakening in growth driven by artificial intelligence when deciding how to tackle persistent inflation, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said, as technology-stock volatility unsettled global markets.
Speaking at IMF headquarters in Washington on November 6, 2026, Georgieva highlighted concerns over elevated share valuations and economies’ growing reliance on investment in artificial intelligence (AI).
“Things are going up and down, and this is likely to continue,” Georgieva said, adding that market volatility would make central banks’ task more difficult as risks to price stability increased.
AI investment supports growth but adds inflation pressure
Georgieva described AI investment as a source of economic growth in some countries, helping cushion the disruption to oil supplies caused by the Middle East war. However, the investment boom was also contributing to inflationary pressure and raising concerns about financial stability.
Georgieva stressed that central banks would need to reassess their policy choices if that support for growth weakened while inflation remained stubborn.
“Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation,” Georgieva said.