The IMF has said governments should consider taxing profits and polluters to counter the disruptive effects of artificial intelligence and climate change.

In its half-yearly fiscal monitor, the Washington-based body said new technology would benefit those with capital but could pose risks to social cohesion by making it harder to raise tax revenues from labour.

The IMF said governments would need to take steps to ensure that the benefits of AI were widely shared and to offset potential falls in receipts from income tax.

“AI may boost productivity and growth but could exacerbate inequality and make it harder to collect taxes,” the IMF said. “Climate change also has major fiscal implications and will require new public investment and policy changes.”

The IMF added: “As machines become more capable and replace workers in some tasks, the share of income going to capital might rise, while the share going to labour declines. If left unaddressed, these trends could exacerbate inequality and lead to weaker demand and slower growth.”

The fund said reforms to taxes on profits, carbon and property could all help to reduce the impact of AI and climate change on fiscal systems and social inequality.

“We need to upgrade tax systems to ensure fairness and efficiency in an increasingly digital and automated world,” said Vitor Gaspar, the IMF’s director of fiscal affairs.

“Fairness calls for those who benefit most from the transformation – be they individuals or companies – to contribute more to the social contract.”

The IMF said its proposed reforms could also include adjusting labour taxation and providing training for workers displaced by AI. It warned that unless governments act swiftly, they risk deepening divides within societies and missing a crucial opportunity to shape the transition.