IMF’s Georgieva says AI’s first wave is already jolting global demand

Artificial intelligence is no longer just a story about future productivity. According to IMF Managing Director Kristalina Georgieva, its first-wave effects are already showing up as demand and investment shocks across the world economy. Georgieva frames the global economy as caught in a tug of war. The downward force is a negative energy supply shock linked to Middle East conflicts, notably the closure of the Strait of Hormuz. The upward force is a positive demand shock driven by a surge in AI investment. A boom built from data centers and chips Since August 2026, Georgieva has pointed to the upside of the AI infrastructure buildout. The spending covers data centers and hardware, and it has been feeding into both corporate earnings and consumer demand. That same spending has come alongside inflationary pressure. The phenomenon first took hold in the US. Georgieva noted it has since spread to several Asian economies, including Malaysia, Thailand, Singapore, China, and India. Those countries are rapidly ramping up data-center construction and AI hardware production. AI-related hardware now makes up over 10% of global goods trade. AI-related investment is also set to match or exceed ...