Are We Ready for AI? Which Countries Are Ready and Which Are Not? The IMF Reveals All!

The International Monetary Fund has unveiled a comprehensive “Artificial Intelligence Preparedness Index Dashboard”, revealing a stark divergence in AI readiness across 174 economies. #AI #IMF #aiforreal #aiforeveryone @IMFNews https://t.co/Ko4RwufnC6 pic.twitter.com/ZIWQGnCPCc

— AI For Real (@AIForReal0101) June 26, 2024

@AIForReal0101 delves into the AI Preparedness Index created by IMF (Supplied/X/Twitter)

AI’s Double-Edged Sword: Productivity Boosts and Job Losses

Artificial intelligence (AI) presents both opportunities and challenges. According to the new AI Preparedness Index Dashboard by the IMF, AI could significantly enhance productivity, boost economic growth, and create new industries. However, it also poses a threat to jobs, potentially endangering 33% of jobs in advanced economies, 24% in emerging economies, and 18% in low-income countries. The readiness of countries to harness AI’s benefits varies, with wealthier nations better equipped due to their digital infrastructure, skilled workforce, and regulatory frameworks.

Inequality Risks and Readiness Disparities

The readiness for AI adoption highlights stark disparities between nations. Advanced economies, with a higher share of high-skilled jobs, are more prepared to integrate AI and benefit from its productivity gains. In contrast, emerging and low-income countries face significant challenges due to inadequate infrastructure and insufficient skilled labour, which could exacerbate global inequality. The AI Preparedness Index Dashboard tracks 174 economies, assessing their digital infrastructure, human capital, labour policies, innovation, integration, and regulation to gauge their readiness for AI.

Policymaker Priorities for a Balanced Future

To mitigate the risks and maximise the benefits of AI, policymakers must take targeted actions. In advanced economies, expanding social safety nets, investing in worker training, and prioritising AI innovation are crucial. Globally, strengthening regulations to protect against AI abuses and building trust in the technology are essential. For emerging and developing economies, the focus should be on investing in digital infrastructure and training to build a foundation for future AI integration, ensuring that the rapid gains of AI benefit all. Particularly in the Pacific, where some countries such as Fiji have AI frameworks in the pipeline, there is some need for haste, as many in the Pacific already have a use for AI in various fields.

(Read the full article on the IMF website)

*An AI tool was used to add an extra layer to the editing process for this story.