Context:

India ranks lower than some of its Asian Peers in the AI Preparedness Index. 

Key Findings of the Report

• The International Monetary Fund (IMF) released an Artificial Intelligence Preparedness Index (AIPI) which tracks 174 economies globally for AI readiness. 
• The Index has categorised each country into Advanced Economy (AE), Emerging Market Economy (EM), and Low-Income Country (LIC).
  India with a score of 0.49, has been categorised as an EM. 
• India ranks 72 in a total of 174 countries, with Bangladesh (0.38) at 113, Sri Lanka (0.43) at 92, and China (0.64) at 31. 
• According to the Index, India lags behind some of its Asian peers, such as Indonesia (0.52), China (0.64), and Singapore (0.8), in terms of preparedness for the advent of Artificial Intelligence (AI).
• Singapore (0.80), Denmark (0.78), and the United States (0.77) are the top three performers, whereas South Sudan (0.11), Afghanistan (0.13), and Central African Republic (0.18) are at the bottom.  

Countries Digital Infrastructure Scores Human Capital and Labor Market Policies Scores Innovation and Economic Integration Scores Regulation and Ethics Scores Overall: AI Preparedness Index Scores

About IMF AI Preparedness Index

• The IMF’s AIPI assesses how prepared 174 economies around the world are for the adoption of artificial intelligence (AI).

The AIPI considers four key areas to determine a country's AI readiness:

• Digital infrastructure: This includes factors like internet access, broadband speed, and mobile phone coverage.
• Human capital and labour market policies: The index looks at a country's investment in education, particularly STEM fields, as well as policies to address potential job displacement due to AI.
• Innovation and economic integration: This dimension considers a country's research and development environment, its openness to trade and investment, and its ability to develop and adopt new technologies.
• Regulation and ethics: The AIPI examines a country's legal framework for AI, including data privacy and cybersecurity regulations.
• The score varies between 0 to 1, with higher scores indicating greater preparedness for AI.

About the International Monetary Fund 

• It was founded in 1944 at the Bretton Woods Conference following the economic devastation of the Great Depression.
• The core mission is to encourage financial stability and monetary cooperation among its members.
• Member Countries: 190
• Headquarters: Washington, DC.
• Important Reports released by IMF: World Economic Outlook, Global Financial Stability Report, Fiscal Monitor.