Context

The International Monetary Fund (IMF) has recently unveiled its comprehensive Artificial Intelligence Preparedness Index (AIPI) Dashboard. This innovative tool assesses and ranks 174 countries based on their readiness to adopt and implement AI technologies. The dashboard aims to provide valuable insights into how prepared each nation is to leverage AI for economic and social benefits.

Key Highlights:

1.    Objective and Release

• Objective: To evaluate the AI readiness of countries globally and understand their capabilities to use AI technologies effectively.
• Release: The AIPI Dashboard was made publicly available on the IMF’s official website.

2.    Country Ratings and Categories

• Categories: The AIPI categorizes countries into three groups: Low-Income Countries (LIC), Emerging Market Economies (EM), and Advanced Economies (AE).
• Top Performers in AE:

• • Singapore: 0.80
  • Denmark: 0.78
  • United States: 0.77

• India’s Performance:

• • Category: Emerging Market Economy (EM)
  • Score: 0.49
  • Global Rank: 72nd

• Comparison with Neighbours:

• • Bangladesh: 113th (0.38)
  • Sri Lanka: 92nd (0.43)
  • China: 31st (0.63)

3.    Evaluation Criteria

• Digital Infrastructure
• Human Capital and Labor Market Policies
• Creativity and Economic Integration
• Rules and Regulations These criteria collectively determine a country’s capacity to harness AI technologies

4.    Implications of AI on Global Employment

• Advanced Economies: AI could impact approximately 33% of jobs.
• Emerging Markets: AI could affect about 24% of jobs.
• Low-Income Countries: AI might threaten 18% of jobs.
• Global Impact: Overall, AI could influence around 40% of jobs worldwide.
• Positive Aspects: Despite the potential job disruptions, AI is anticipated to enhance productivity and foster the creation of new industries and job opportunities.

5.    AI, Inequality, and Policy Response

• Economic Inequality: AI’s rapid development could exacerbate economic inequality.
• Productivity and Job Creation: Conversely, AI can significantly boost productivity, generate employment, and initiate new industries.
• Policy Guidance: The AIPI Dashboard aims to equip policymakers, researchers, and the public with essential data to ensure equitable benefits from AI advancements.

Significance of this Index for India:

• Global Positioning: India’s rank of 72 highlights the need for significant improvements in digital infrastructure, human capital, and regulatory frameworks to enhance AI readiness.
• Policy Implications: Policymakers must focus on strengthening these areas to ensure that India can fully leverage AI technologies for economic and social development.
• Job Market Dynamics: Understanding the potential job disruptions and opportunities presented by AI is crucial for developing comprehensive employment and educational policies.
• International Comparisons: Comparing India's AI readiness with that of neighboring countries and global leaders can provide insights into best practices and areas needing attention.
• Future Prospects: As AI continues to evolve, India’s strategic focus on AI readiness will be vital in maintaining competitiveness and achieving sustainable growth.

India's Initiatives for Promoting Artificial Intelligence (AI)

International Monetary Fund (IMF)

• Founded in 1944 at the Bretton Woods Conference.
• Located in Washington, D.C., United States.
• Comprises 190 member countries.
• Managing Director: Kristalina Georgieva