PYMNTS.com January 19, 2026
The IMF is reportedly warning of a threat to the world economy from an AI downturn.
In its latest World Economic Outlook, published Monday (Jan. 19), the International Monetary Fund (IMF) said that if predictions about productivity advances fueled by artificial intelligence (AI) turned out to be too rosy, it could lead to a wider downturn.
“Reevaluation of productivity growth expectations about AI could lead to a decline in investment and trigger an abrupt financial market correction, spreading from AI-linked companies to other segments and eroding household wealth,” the report said.
The IMF also noted an upside: activity could be further buoyed by AI investment and yield sustainable growth if faster AI adoption “translates into strong productivity gains and increased...
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