IMF Warns EU AI Growth Risks Jobs and Power Grids

The International Monetary Fund warned European Union finance ministers and central bank governors that the rapid expansion of artificial intelligence risks widening economic inequality and straining power networks. In a background note presented during an informal meeting in Dublin on September 18-19, the organization estimated that AI could increase European productivity by approximately 1% over five years, but cautioned that 60% of workers in advanced European economies hold jobs highly exposed to the technology.

The IMF highlighted significant infrastructural pressures, noting that data centers already consume 3% of Europe's electricity. This demand is placing particular strain on major hubs, including Dublin, Paris, Amsterdam, London, and Frankfurt. The organization urged the EU to invest in cross-border electricity infrastructure and energy market integration to manage this load.

To avoid strategic dependency on the United States and China, the IMF recommended that the EU increase investment in its own AI industry and complete its single market. The European Commission previously raised concerns that fragmented capital, labor, and energy markets hinder the innovation necessary to ensure technological independence.