Armenian finance minister highlights AI’s economic potential and risks

Armenia’s Finance Minister Vahe Hovhannisyan said AI could support economic growth while also creating new economic and labour-market challenges. He made the comments during a parliamentary discussion on the performance of the 2025 state budget.

Hovhannisyan said the impact of AI is being widely debated internationally and that governments around the world are actively exploring its economic implications. He was responding to questions about AI’s potential effect on GDP growth and the expansion of the tax base.

The minister cited international estimates suggesting that AI adoption could add approximately 0.8 to 1 percentage point to economic growth. He said AI has the potential to generate new forms of employment while supporting productivity and economic growth.

At the same time, Hovhannisyan warned that AI could disrupt existing jobs and create adjustment challenges for labour markets. The remarks were made during discussions on Armenia‘s 2025 budget performance, as the government’s 2026 budget projects economic growth of 5,4%.

Why does it matter?

The comments reflect a broader global debate about AI’s economic impact. Policymakers increasingly view AI as a potential driver of productivity, innovation and economic growth, while also recognising the possibility of labour-market disruption and changing workforce demands.

For emerging economies such as Armenia, the challenge is not only adopting AI technologies but also ensuring that workers and businesses can benefit from them. The long-term impact of AI on growth, employment and public finances will depend on investment, skills development and the ability to adapt to technological change.

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