The International Monetary Fund (IMF) has unveiled an Artificial Intelligence Preparedness Index (AIPI) Dashboard on their website. This new tool assesses the AI readiness of 174 economies globally, categorizing them into Advanced Economies (AE), Emerging Market Economies (EM), and Low-Income Countries (LIC).
Key Ratings
- Advanced Economies (AEs):
- Singapore: 0.80
- Denmark: 0.78
- United States: 0.77
- Emerging Market Economies (EMs):
- India: 0.49 (Rank 72 out of 174)
- China: 0.63 (Rank 31)
- Sri Lanka: 0.43 (Rank 92)
- Bangladesh: 0.38 (Rank 113)
Assessment Criteria
The ratings are based on the evaluation of readiness in four key areas:
- Digital infrastructure
- Human capital and labor market policies
- Innovation and economic integration
- Regulation
Impacts of AI on Employment
In a research blog published on January 14, the IMF highlighted the potential impacts of AI on employment:
- Advanced Economies (AEs): 33% of jobs are at risk
- Emerging Market Economies (EMs): 24% of jobs are at risk
- Low-Income Countries (LICs): 18% of jobs are at risk
- Global Impact: 40% of jobs could be affected, with some being replaced and others being complemented by AI.
Positive Aspects and Policy Implications
Economist Giovanni Melina from the IMF emphasized the potential benefits of AI:
- AI can enhance productivity in existing jobs.
- AI can create new jobs and even new industries.
However, Melina also warned that AI might exacerbate overall inequality. Policymakers need to address this issue to ensure that the benefits of AI are distributed fairly. The AIPI Dashboard serves as a resource for policymakers, researchers, and the public to better assess AI preparedness and to identify necessary actions and policies.
Multiple-Choice Questions (MCQs):
- What is the purpose of the IMF’s Artificial Intelligence Preparedness Index (AIPI) Dashboard?
- A) To track global economic growth
- B) To assess AI readiness of 174 economies
- C) To rank countries based on GDP
- D) To monitor unemployment rates
- Which country has the highest AI readiness rating according to the AIPI Dashboard?
- A) United States
- B) Denmark
- C) Singapore
- D) China
- What are the four key areas used to assess AI readiness in the AIPI Dashboard?
- A) Economic policies, digital infrastructure, human capital, innovation
- B) Digital infrastructure, human capital, economic growth, regulation
- C) Digital infrastructure, human capital and labor market policies, innovation and economic integration, regulation
- D) Economic growth, human capital, innovation, regulation
- According to the IMF’s research, what percentage of jobs in Advanced Economies (AEs) are at risk due to AI?
- A) 18%
- B) 24%
- C) 33%
- D) 40%
- Which of the following statements did Economist Giovanni Melina make about AI?
- A) AI will eliminate all existing jobs.
- B) AI has the potential to enhance productivity and create new jobs.
- C) AI will reduce global inequality.
- D) AI will only benefit advanced economies.