On 25th June 2024, the International Monetary Fund (IMF) released an Artificial Intelligence Preparedness Index (AIPI) Dashboard which tracks the level of Artificial Intelligence (AI) readiness across 174 countries. According to AIPI, India has secured the 72nd Rank among the 174 countries, with a rating of 0.49.
- Singapore (0.80) topped the overall index followed by Denmark (0.78) and the United States of America (USA) (0.77) at the 2nd and 3rd position respectively.
About AIPI:
i.The index ranked the countries based on their performance in 4 key areas such as: digital infrastructure, human capital and labour market policies, innovation and economic integration, and regulation and ethics.
ii.It has classified each country into 3 main categories such as: Advanced Economy (AE), Emerging Market Economy (EM), and Low-Income Country (LIC).
iii.The source data used in the index include official data, surveys of perceptions compiled by 8 institutions, namely: Fraser Institute, International Labour Organisation (ILO), International Telecommunication Union (ITU), United Nations (UN), United Nations Conference on Trade and Development (UNCTAD), Universal Postal Union (UPU), World Bank and World Economic Forum (WEF).
Top 5 and bottom 5 countries in AIPI:
| Rank | Country | Rating | Rank | Country | Rating |
|---|---|---|---|---|---|
| 1 | Singapore | 0.800 | 174 | South Sudan | 0.105 |
| 2 | Denmark | 0.778 | 173 | Afghanistan | 0.132 |
| 3 | USA | 0.771 | 172 | Central African Republic (CAR) | 0.184 |
| 4 | The Netherlands | 0.766 | 171 | Somalia | 0.201 |
| 5 | Estonia | 0.754 | 170 | Mauritania | 0.232 |
| 72 | India | 0.492 |
Key Highlights:
i.The top 3 countries (Singapore, Denmark and the USA) in the index are from the AE category.
ii.India with rating of 0.49 has been placed in the EM category. India is the 2nd country with highest rating in Asia region after China which is ranked at 31st spot with rating of 0.63.
- While, Bangladesh (0.38) and Sri Lanka (0.43) ranked at 113rd and 92nd position respectively.
Key Points:
i.In January 2024, the IMF published a research paper on AI, it showed how AI is poised to reshape the global economy but also cautioned that AI could endanger 33% of jobs in AEs, 24% in EMs, and 18% in LICs.
- It also highlighted that AI has enormous potential which can enhance the productivity of existing jobs as AI can be a complementary tool and can create new jobs and even new industries.
- For example, in advanced economies, around 30% of jobs could benefit from AI integration.
ii.It noted that most emerging market economies and low-income countries have smaller shares of high-skilled jobs than advanced economies so, will have less chances to be affected from AI.
iii.It suggested that policymakers in advanced economies should expand social safety nets, invest in training workers, and prioritize AI innovation and integration.
About International Monetary Fund(IMF):
Managing Director– Kristalina Georgieva
Member nations–190
Headquarters- Washington, D.C., United States of America (USA)
Established- 1944
