Top Countries in AI Preparedness Index 2023-24

November 2, 2024

Artificial intelligence (AI) is reshaping the global economy. It is reinventing labor markets, industries, and societal dynamics. This transformation brings both opportunities and challenges. The global AI market is expected to grow, with a compound annual growth rate (CAGR) of 36.6% from 2024 to 2030. Advanced economies will experience these changes sooner than emerging markets due to their focus on cognitive-intensive roles.

AI Preparedness Index (AIPI)

The AI Preparedness Index (AIPI) measures a country’s readiness to adopt AI technologies. The index considers four key metrics:

Digital infrastructure
Human capital
Technological innovation
Legal frameworks

The International Monetary Fund (IMF) released the AI Preparedness Index for 2023, ranking countries based on these criteria.

Top Countries Most Prepared for AI

According to the IMF, the top 10 countries most prepared for AI in 2023 are:

Singapore – Score: 0.80
United States
United Kingdom
Germany
France
Canada
Australia
Sweden
Netherlands
Finland

Singapore leads with the highest score, having invested heavily in AI capabilities. It also has the fastest workers in adopting AI skills, according to LinkedIn.

India’s Position in AI Preparedness

India ranks 72nd out of 174 countries, with an AI Preparedness Index rating of 0.49. Despite this lower ranking has the highest percentage of AI users. About 45% of respondents reported using ChatGPT. The country is home to 338 AI startups, indicating a growing interest in AI technologies.

Comparison with Other Emerging Markets

In comparison to India, other emerging markets like Bangladesh and Sri Lanka rank lower. Bangladesh has a score of 0.38 and is ranked 113th. Sri Lanka has a score of 0.43, placing it at 92nd. China, while an emerging market, has a better ranking of 31st with a score of 0.63.

Consumer Awareness of AI

Consumer awareness of AI tools varies globally. In India and the United Arab Emirates, over 90% of consumers are familiar with ChatGPT. Awareness in China and Saudi Arabia exceeds 80%. This high level of awareness indicates a strong interest in AI technologies among consumers in these regions.

Challenges for Advanced Economies

Advanced economies must enhance regulatory frameworks to manage AI’s impact. They need to facilitate labor reallocation to mitigate job displacement. Protecting those negatively affected by AI adoption is crucial.

Focus on Emerging Economies

Emerging markets should prioritize building robust digital infrastructure. They must encourage digital skills development to prepare their workforce for AI integration. This focus will help them leverage AI’s benefits in the future.

AI is transforming economies worldwide. The AI Preparedness Index marks the varying levels of readiness among countries. As AI continues to evolve, understanding these dynamics is essential for effective adaptation and growth.

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