India Ranks 72 In AI Preparedness Globally As Market Set To Swell: IMF Report
The country's AI Preparedness Index score stood at 0.492, on a scale of 0 to 1.
India ranked 72 among 174 countries in artificial intelligence readiness, according to a latest International Monetary Fund report.
The country's AI Preparedness Index score stood at 0.492, on a scale of 0 to 1. While Singapore (0.80) bagged the first rank, Denmark (0.78), and the United States (0.77) are among the highest-rated advanced economies, according to the report.
China ranked 31 (0.63), while Sri Lanka ranked 92 (0.43) and Bangladesh got 113 rank (0.38).
IMF AIPI Index
The index assesses the level of AI-preparedness based on a rich set of macro-structural indicators that cover the following factors, according to the IMF website:
Digital infrastructure.
Human capital and labour market policies.
Innovation and economic integration.
Regulation and ethics.
India scored 0.11 in both ‘digital infrastructure’ and ‘innovation and economic integration’. In ‘human capital and labour market policies’, it scored 0.12. While in terms of ‘regulation and ethics’, the score was 0.15.
Indian AI Market
The AI market in India is projected to reach $8 billion by 2025, according to the International Trade Administration. “AI adoption is increasing across various sectors in India, driven by initiatives like the National AI Strategy and the National AI Portal launched by the Government of India.”
The adoption of the technology opens up opportunities in different sectors like agriculture, finance, healthcare, retail, and manufacturing.
But, data privacy and security, ethical concerns related to bias, transparency and accountability, limited access to high-speed internet and digital infrastructure and shortage of AI-skilled professionals are some of the challenges that prevail regarding AI adoption.
Although AI could reshape the global economy, it could endanger 33% of jobs in advanced economies, 24% in emerging economies, and 18% in low-income countries, according to the report.
However, AI could complement worker skills, enhance productivity, and expand opportunity, wrote Giovanni Melina in a blog post on IMF's website. “Workers who can harness the technology may see it pay gains or greater productivity, while older workers could struggle to adapt,” she said.
Policy priority for emerging markets and developing economies should be focused on investing in digital infrastructure and digital training for workers, IMF said.
Gap Among Economies
The IMF report divided the countries into three major groups—advanced economies, emerging market economies, and low-income countries.
Wealthier economies tend to be better equipped for AI adoption, according to the report. Lack of infrastructure or skilled workforces in low-income countries could worsen inequality among nations, Melina wrote.
“Under most scenarios, AI will likely worsen overall inequality, a troubling trend that policymakers can work to prevent.”
The AIPI score of advanced economies was 0.68, while it was 0.46 for emerging markets and 0.32 for low income countries.
