Overview and Sector Insights

- AI is revolutionising the global economy with profound impacts on labour markets and societal dynamics.

- The global AI market is forecasted to grow at a CAGR of 36.6% from 2024 to 2030, highlighting the sector's increasing significance.

 

Impact on Developing and Advanced Economies

- The IMF implies that developed economies will likely experience the advantages and pitfalls of AI adoption ahead of emerging markets, largely due to employment structures focused on cognitive-intensive roles.

- Prioritising regulatory frameworks and facilitating labour reallocation should be key focus areas for advanced economies.

 

Global Awareness of AI

- Over 90% of consumers in India and the UAE are familiar with AI technologies such as "ChatGPT", with notable awareness in China and Saudi Arabia.

 

Global AI Preparedness Index

- The IMF's AI Preparedness Index measures a nation's readiness for AI adoption based on factors including digital infrastructure, human capital, technological innovation, and legal frameworks.

- Singapore, Denmark and the United States are among the top-ranking countries in terms of AI Preparedness Index scores.

 

AI Preparedness across Key Nations

- Singapore leads in AI capabilities with a score of 0.80.

- Northwestern European countries like Denmark, Netherlands, and Finland, are also ahead due to early national AI initiatives.

- Finland launched an AI strategy in 2017 to boost corporate competitiveness and data efficiency, while Sweden focused on education, research and infrastructure development.

 

India's Position in AI Preparedness

- India distinguishes itself with high AI usage rates, as 45% of respondents reported utilising AI software "ChatGPT".

- India is home to a thriving AI startup ecosystem with 338 startups.

- Among 174 countries, India ranks 72nd, holding an AI Preparedness Index rating of 0.49.

- China, Sri Lanka, and Bangladesh are other key countries in the region, ranked 31st, 92nd, and 113th respectively in terms of AI preparedness.