AI Preparedness Index (AIPI), Top Countries Most Prepared For AI: Artificial intelligence (AI) is rapidly transforming the global economy today—fundamentally reinventing labour markets, industries, and societal dynamics, which have thereby brought both opportunities and challenges. As there's growing adoption of AI, a forecast by Grand View Research highlights that the global AI market size is projected to grow at a compound annual growth rate (CAGR) of 36.6% from 2024 to 2030. 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. As a result, advanced economies and developed markets must prioritise enhancing regulatory frameworks and facilitating labour reallocation, all while protecting those who are negatively impacted. Meanwhile, emerging markets and developing economies should focus on building robust digital infrastructure and fostering digital skills development. BCG highlights that more than 90% of consumers in India and the United Arab Emirates are familiar with ChatGPT, while awareness levels in China and Saudi Arabia surpass 80%. As AI has increasingly integrated into our everyday lives today, the IMF’s AI Preparedness Index 2023, using the average of its four key metrics: digital infrastructure, human capital, technological innovation, and legal frameworks, has ranked countries based on their AI preparedness. Top 10 countries most prepared to embrace AI, as of 2023: Having invested hundreds of millions of dollars to enhance AI capabilities and support national AI strategies, Singapore stands out as the country most prepared for seamless AI adoption, with an API score of 0.80. According to LinkedIn, Singaporean workers are also the fastest in the world to adopt AI skills. Covering a total of 174 countries for 2023, the IMF has ranked the top 10 countries most prepared for AI, as of 2023: Rank Country AI Preparedness Index Score (0-1) 1 Singapore 0.80 2 Denmark 0.78 3 United States 0.77 4 Netherlands 0.77 5 Estonia 0.76 6 Finland 0.76 7 Switzerland 0.76 8 New Zealand 0.75 9 Germany 0.75 10 Sweden 0.75 Source: IMF Northwestern European nations, particularly Denmark (#2), the Netherlands (#4), Estonia (#5), Finland (#6), and Sweden (#10), have been among the early adopters of national AI initiatives. Finland's 2017 AI strategy aimed to enhance corporate competitiveness and improve data efficiency. In contrast, Sweden's 2018 "National Approach for Artificial Intelligence" emphasized the importance of education, research, and infrastructure development. India's position explained: India leads the way with the highest percentage of users, as 45% of respondents reported using ChatGPT, according to BCG, with the country boasting 338 startups. However, the IMF notes that India, an emerging market economy, with an AI Preparedness Index rating of 0.49, ranks 72 in a total of 174 countries, with Bangladesh (0.38) on 113, Sri Lanka (0.43) on 92, and China (0.63) on 31.
