Source: INDIA AI

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Context: IMF's new AI Preparedness Index tracks 174 economies, including India

Details

Index Data

• The International Monetary Fund (IMF) released an Artificial Intelligence Preparedness Index (AIPI) index on June 25, 2024, tracking 174 economies globally for AI readiness. 
• India and its Neighbour: The Index ranks India at the 72nd position, with Bangladesh (0.38) at 113, Sri Lanka (0.43) at 92, and China (0.63) at 31.
• Other topped countries: 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. 

Analysis based on

• The rating for each country is analysed based on their digital infrastructure, human capital, labour policies, innovation, integration and regulation. 

Category of economy

• The Index has categorised each country into Advanced Economy (AE), Emerging Market Economy (EM), and Low-Income Country (LIC).

AI impact on the advanced economy

• Negative: AI is poised to reshape the global economy. It could endanger 33 percent of jobs in advanced economies, 24 percent in emerging economies, and 18 percent in low-income countries. 
• Positive: It also brings enormous potential to enhance the productivity of existing jobs for which AI can be a complementary tool and to create new jobs and even new industries. AI can also complement worker skills, enhancing productivity and expanding opportunities.

AI impact on emerging market economies and low-income countries

• Most emerging market economies and low-income countries have smaller shares of high-skilled jobs than advanced economies, so they will likely be less affected and face fewer immediate disruptions from AI.
• At the same time, many of these countries lack the infrastructure or skilled workforces needed to harness AI's benefits, which could worsen inequality among nations.

Worsening inequality

• AI will likely worsen overall inequality, a troubling trend that policymakers can work to prevent.
• It is a resource for policymakers, researchers, and the public to better assess the AI preparedness and, importantly, to identify the actions and design the policies needed to help ensure that the rapid gains of AI can benefit all.

IndiaAI Mission The Government of India launched the IndiaAI Mission, a comprehensive national-level program to democratize and catalyze the AI innovation ecosystem in the country and ensure the global competitiveness of India’s AI startups and researchers. The Mission aims to establish a robust AI ecosystem through strategic programs and partnerships across the public and private sectors. By democratizing computing access, improving data quality, developing indigenous AI capabilities, attracting top AI talent, enabling industry collaboration, providing startup risk capital, ensuring socially impactful AI projects and bolstering ethical AI, it will drive responsible, inclusive growth of India's AI ecosystem. The Mission will be implemented by ‘IndiaAI’ Independent Business Division (IBD) under Digital India Corporation (DIC) and has the following components: IndiaAI Compute Capacity, IndiaAI Innovation Centre, IndiaAI Datasets Platform, IndiaAI Application Development Initiative, IndiaAI FutureSkills, IndiaAI Startup Financing, and Safe & Trusted AI.

Way Ahead

IMF recommends policymakers in advanced economies expand social safety nets, invest in training workers, and prioritise AI innovation and integration. Coordinating with one another globally, these countries should also strengthen regulations to protect people from potential risks and abuses and build trust in AI.

Sources:

IMF

PRACTICE QUESTION Q. Artificial Inteligence Preparedness Index 2024 recently released by ? A.IMF B.World Bank C.WEF D.European Union Answer A