IMF says AI economic boost outweighs emissions cost, and other digital technology stories you need to know

Artificial intelligence will deliver significant economic benefits that exceed its environmental impact, according to a report from the International Monetary Fund (IMF) released at its annual Spring Meetings with the World Bank Group.

The IMF projects AI will boost global GDP by approximately 0.5% annually between 2025 and 2030, with economic gains surpassing the costs of increased carbon emissions from energy-hungry data centres.

"Despite challenges related to higher electricity prices and greenhouse gas emissions, the gains to global GDP from AI are likely to outweigh the cost of the additional emissions," the IMF said, as reported by Reuters.

"The social cost of these extra emissions is minor compared with the expected economic gains from AI, yet it still adds to the worrisome buildup of emissions."

The IMF has plotted the emissions impacts of expansion in the IT sector, below, with the left axis showing the total increase in greenhouse gas emissions in metric tons of carbon dioxide (MtCO2e) from 2025-2030 from IT sector expansion. The right axis shows the total increase in global emissions in 2030 relative to the baseline emissions as a result of this expansion.

AI-driven global electricity needs could more than triple to 1,500 TWh by 2030, equivalent to India's current electricity consumption, the IMF estimates.

Under existing energy policies, AI adoption would increase greenhouse gas emissions by 1.2% between 2025-2030. The social cost of these emissions ($50.7-66.3 billion) remains smaller than projected economic gains.

Grantham Research Institute policy fellow Roberta Pierfederici told Reuters: "Governments, tech companies and energy companies must play an active role in ensuring AI is used intentionally, equitably and sustainably."

A global survey reveals emerging economies have greater trust in AI compared to advanced nations – and are more excited and optimistic about its benefits.

The study by the University of Melbourne and KPMG surveyed more than 48,000 participants across 47 countries. It found:

Melbourne Business School's Nicole Gillespie, the study’s lead, said: "Public trust in AI’s safe use is central to sustained adoption."

Such developments are being closely monitored by the World Economic Forum's AI Governance Alliance, which convenes leading voices from industry, government, academia, and civil society to advocate for transparent, accountable AI systems that are aligned with human and societal values.

The Duke and Duchess of Sussex have called for stronger protection for children against online harm, reports the BBC. "Life is better off social media," said Prince Harry, as he and Meghan unveiled New York’s 'Lost Screen Memorial', which honours children whose lives have been affected by social media.

It comes as Australia's Prime Minister, Anthony Albanese, and leader of the opposition, Peter Dutton, both vowed to stand firm on the country's plans to ban social media for children under 16 – ahead of the election on 3 May.

Films made using AI will be eligible to win Oscars, according to new rules from the Academy of Motion Picture Arts and Sciences, which say the use of AI and other digital tools would "neither help nor harm the chances of achieving a nomination".

UK workers could save more than 120 hours a year by using AI to do admin tasks, according to a pilot study run by Google. The tech company said the UK could see a $533 billion boost by training its workforce to use AI.

AI is revolutionizing India's healthcare strategy via accelerated drug discovery and data analysis, offering a model to other low- and middle-income countries. By embracing AI, digital public infrastructure and cross-sector collaboration, India is helping improve access to effective healthcare across the country. Explore the four key pillars shaping healthcare in India in this article.

Digital technologies are also helping businesses adapt to the climate crisis, as this video explains:

Governments worldwide face a growing pressure to modernize. People today expect the same level of convenience, speed and transparency from their public institutions as they do from their banking apps and food delivery platforms. Governments must embrace digital public infrastructure and GovTech if they are to consistently deliver inclusive, efficient and accountable public services. Some of the most promising examples of this transformation come from the Global South, with Brazil leading the way. Explore the nation's journey here.