Mapping the World's Readiness for Artificial Intelligence Shows Prospects Diverge

IMF Blog, June 25, 2024

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New AI Preparedness Index Dashboard tracks 174 economies based on readiness in four areas: digital infrastructure; human capital and labor market policies; innovation and economic integration; and regulation.
AI has potential to increase productivity, boost economic growth, and lift incomes, but also could eliminate jobs and widen inequality.

AI could endanger 33 percent of jobs in advanced economies, 24 percent in emerging economies, and 18 percent in low-income countries.
In advanced economies, some 30 percent of jobs could benefit from AI integration.
Wealthier economies tend to be better equipped for AI adoption than low-income countries.
Most emerging market economies and low-income countries have smaller shares of high-skilled jobs than advanced economies, implying they may face fewer immediate disruptions from job displacement but also have less capacity to harness AI’s benefits due to weaker infrastructure and skills.

Coverage: 174 economies.
Dimensions measured: digital infrastructure; human capital and labor market policies; innovation and economic integration; regulation.
Purpose: provide policymakers, researchers, and the public a resource to assess AI preparedness and to identify actions and policies needed to help ensure that the rapid gains of AI can benefit all.

Under most scenarios, AI will likely worsen overall inequality.
Heterogeneous readiness: different countries are at different stages of readiness to leverage AI benefits and manage risks.
Labor-market implications:
- Potential for complementary effects where AI enhances worker skills, productivity, and pay for workers who can harness the technology.
- Younger workers may find it easier to exploit AI opportunities; older workers may struggle to adapt.

For advanced economies:
- Expand social safety nets.
- Invest in training workers.
- Prioritize AI innovation and integration.
- Strengthen regulation to protect people from potential risks and abuses and to build trust in AI.
- Coordinate globally with other advanced economies on regulation.
For emerging market and developing economies:
- Lay a strong foundation by investing in digital infrastructure.
- Invest in digital training for workers.

The dashboard is a response to stakeholder interest in accessing the index and is intended as a practical tool to inform policy design to mitigate risks and spread AI benefits.
For additional context on how AI affects economies, refer to the IMF’s December issue of Finance & Development and the recent Analyze This! video (as noted in the source content).

Giovanni Melina; June 25, 2024.