IMF says AI could lift European productivity while increasing economic strain.

An International Monetary Fund paper presented to European Union finance ministers estimated that artificial intelligence could raise European productivity by about 1% over five years. Reuters reported that roughly 60% of workers in advanced European economies hold occupations highly exposed to AI.

The IMF also warned that rapid adoption could widen inequality, increase dependence on foreign technology and strain electricity systems; data centers already account for about 3% of European electricity use. It urged stronger cross-border grids, a deeper single market and investment in Europe’s own AI capabilities.