Global AI Preparedness India’s Position Among Leading Nations

Artificial intelligence (AI) is revolutionizing the global economy, reshaping labor markets, industries, and societal dynamics. This transformation brings vast opportunities along with complex challenges. According to a forecast by Grand View Research, the global AI market is expected to grow at a robust compound annual growth rate (CAGR) of 36.6% from 2024 to 2030, highlighting AI’s expanding role in various sectors.

Key Insights on Global AI Preparedness

• IMF highlights this will result in advanced economies experiencing its benefits and pitfalls sooner than the emerging market and developing economies, primarily owing to their employment structure focused on cognitive-intensive roles.

Regulatory Framework 

• As a result, advanced economies and developed markets must prioritize enhancing regulatory frameworks and facilitating labor reallocation, all while protecting those who are negatively impacted.

AI Awareness in Global Markets

• BCG reports that over 90% of consumers in India and the UAE are familiar with ChatGPT, with awareness also high in China and Saudi Arabia (over 80%).

IMF AI Preparedness Index 2023

The IMF’s AI Preparedness Index measures a country’s AI readiness based on four factors,

1. Digital infrastructure, 
2. Human capital, 
3. Technological innovation, 
4. Legal frameworks.

Top 10 Countries Most Prepared for AI Adoption (2023),

Leading Countries

• Singapore ranks first with a score of 0.80, excelling in AI capabilities and workforce adaptability. 
• Northwestern European countries, such as Denmark, Netherlands, and Finland, also lead due to early national AI initiatives.

AI Strategies in Northwestern Europe

• Finland : Launched an AI strategy in 2017 to boost corporate competitiveness and data efficiency.
• Sweden : Focused on education, research, and infrastructure development in its 2018 “National Approach for Artificial Intelligence.”

India’s Position in AI Preparedness

AI Usage and Innovation

• India has one of the world’s highest AI usage rates, with 45% of respondents using ChatGPT.
• The country has a vibrant AI startup ecosystem with 338 startups.
• AI Preparedness Index Score
• India ranks 72 out of 174 countries, with an AI Preparedness Index rating of 0.49.

Comparison with Other Countries in the Region,

• China: Score of 0.63, ranked 31st.
• Sri Lanka: Score of 0.43, ranked 92nd.
• Bangladesh: Score of 0.38, ranked 113th.

Key Facts

• AI Preparedness Index released by IMF (Internal Monetary Fund).
• AI Preparedness Index (AIPI) assesses the level of AI preparedness across 174 countries, based on a rich set of macro-structural indicators that cover the countries’ digital infrastructure, human capital and labor market policies, innovation and economic integration, and regulation and ethics.