IMF Says AI Could Lift Europe’s Productivity by 1% Over Five Years
DUBLIN, Ireland — September 19, 2026

Artificial intelligence could increase productivity across Europe by around 1% over the next five years, but the gains may come with greater inequality, pressure on electricity networks and increased dependence on foreign technology, according to an International Monetary Fund paper prepared for European Union finance ministers.

The IMF presented its assessment at an informal meeting of EU finance ministers in Dublin on September 18–19.

AI Could Boost European Productivity
The IMF estimates that AI adoption could raise European productivity by approximately 1% cumulatively over five years.

The potential gains are expected to vary between countries and sectors. Economies with greater exposure to AI-related technologies and stronger capacity to adopt them could benefit more quickly, while countries with lower adoption rates may see smaller gains.

The IMF has previously estimated that, without broader economic reforms, the medium-term productivity benefit from AI adoption alone would be relatively modest at around 1.1% cumulatively over five years for Europe.

Around 60% of Workers Highly Exposed to AI
The latest IMF paper estimates that about 60% of workers in advanced European economies are employed in occupations highly exposed to artificial intelligence.

AI could increase productivity for workers whose jobs are complemented by the technology. At the same time, some roles could face greater automation risks, particularly where AI can perform routine tasks previously carried out by employees.

The IMF warned that differences in AI adoption could also widen economic gaps between European countries, regions and groups of workers.

Growing Pressure on Europe’s Power Grid
The expansion of AI is also expected to increase demand for electricity.

The IMF noted that data centers in major European technology hubs already account for roughly 3% of electricity consumption, with cities including Frankfurt, London, Amsterdam, Paris and Dublin facing particularly strong demand from data-center infrastructure.

As AI services and computing requirements expand, governments may need additional investment in energy infrastructure to accommodate growing electricity demand.

IMF Calls for Deeper European Integration
The IMF said completing the EU’s single market could help countries adopt AI more widely and distribute its economic benefits more evenly.

The fund also highlighted the need for investment in cross-border energy infrastructure and efforts to develop Europe’s own AI industry, reducing strategic dependence on technology from the United States and China.

The report suggests that AI could provide a meaningful productivity boost to Europe, but the scale and distribution of those gains will depend on how quickly businesses adopt the technology and how effectively governments address infrastructure, labor-market and economic integration challenges.

Sources
Reuters – IMF tells EU ministers AI could boost growth but increase economic strains
IMF – How Europe Can Capture the AI Growth Dividend