The Artificial Intelligence Preparedness Index (AIPI) : 2024

Why in News?  The Artificial Intelligence Preparedness Index (AIPI) for 2024, released by the International Monetary Fund (IMF), evaluates the readiness of 174 countries to adopt and integrate artificial intelligence (AI).

The index assesses countries based on several criteria, including digital infrastructure, human capital, labor policies, innovation, integration, and regulation​ .

• The Index has categorised each country into Advanced Economy (AE), Emerging Market Economy (EM), and Low-Income Country (LIC).
• Singapore (0.80), Denmark (0.78), and the United States (0.77) are among the highest-rated AEs, with India categorised as an EM with a 0.49 rating.
• India 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.

The AIPI highlights significant disparities between countries in terms of AI readiness.

• Wealthier nations generally rank higher due to their robust digital infrastructure and a higher proportion of high-skilled jobs.
• In contrast, many emerging markets and low-income countries lag behind, often lacking the necessary infrastructure and skilled workforce to effectively leverage AI, which could exacerbate global inequality​ .
• For instance, the index shows that advanced economies could see up to 33% of their jobs affected by AI, compared to 24% in emerging markets and 18% in low-income countries.
• Despite these challenges, AI also presents opportunities to enhance productivity, create new jobs, and even establish new industries​ .