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IMF warns artificial intelligence may shrink government tax revenues

The International Monetary Fund has cautioned that widespread AI adoption could reduce the tax income available to governments as the technology affects income levels.

The IMF managing director has warned that the widespread use of artificial intelligence could reduce government tax revenues as the technology squeezes incomes, according to the fund. The warning suggests that governments may need to prepare for potential fiscal challenges that could result from technological disruption.

The caution highlights concerns about how rapidly advancing technology could affect public finances in countries across the world.