Low-income countries least equipped for AI – IMF

In its AI Preparedness Index, the IMF measured the readiness of low-income countries to adopt AI in the face of fast-paced technological change around the world.

From its assessment of 125 countries, low-income countries as classified by the World Bank are likely to be more impacted by AI with inadequate policies to support its integration in areas including digital infrastructure, human capital and labour market policies, innovation, and economic integration, and regulation and ethics.

“The human-capital and labor-market policies component, for example, evaluates elements such as years of schooling and job-market mobility, as well as the proportion of the population covered by social safety nets. The regulation and ethics component assesses the adaptability to digital business models of a country’s legal framework and the presence of strong governance for effective enforcement,” the IMF in its report said.

On the other hand, findings revealed that wealthier countries and advanced economies are better equipped for AI adoption.

The United States, Singapore, and Denmark were among the highest-scoring countries on the index.

The Index also noted that about 40% of global employment is exposed to Artificial Intelligence.  While there’s a likelihood of some jobs being complemented by AI, others will be completely taken over by AI.

The IMF therefore highlighted the need for countries to develop a strong foundation through investments in digital infrastructure and a digitally competent workforce while establishing robust regulatory frameworks.