IMF Warns AI Correction Could Cut US Output 1.8% by 2028
By TechPulse USA Staff — October 14, 2026 The International Monetary Fund just did what the AI industry's loudest sceptics have spent two years trying to do: it put an official, peer-reviewed number on the nightmare. If the AI investment boom ends in a bust, the Fund said Tuesday, global GDP falls 1.1 percent by 2028 — and US output falls 1.8 percent. That is not a blog-post forecast. It is a downside scenario in the Fund's latest World Economic Outlook, released in Bangkok during the IMF and World Bank's annual meetings. And it arrived wrapped in a second report, the Global Financial Stability Report, that names the culprit in language the Fund almost never uses: complacency . Read both reports together and the message is blunt. The same AI capital-spending frenzy that is propping up global growth right now is also the single biggest near-term risk to the financial system — and Wall Street spent Tuesday behaving as though it had already read the memo. The number t...