BCG’s AI Maturity Matrix assesses the AI maturity and resilience of 73 countries around the world
Of the 73 countries assessed, only five were classified as AI pioneers: Canada, mainland China, Singapore, the United Kingdom, and the United States
Economies with the highest proportions of sectors most exposed to AI, such as Luxembourg, Hong Kong, and Singapore, are among the most vulnerable to AI disruption in the world
Most countries surveyed have low R&D and investment scores.
The US and Singapore stand out with strong AI talent pools, with mainland China leading the R&D race
BOSTON , Nov. 20, 2024 /PRNewswire/ — AI has already begun to transform industries and reshape economies, and is poised to significantly shape the future of economic development in the years to come. The scale of this growth has made AI an economic priority in every region of the world. But new research from Boston Consulting Group (BCG) proves that most economies are ill-prepared for disruption from AI. The study, released today, shows more than 70% of countries surveyed score below average in key areas such as ecosystem participation, skills and research and development.
AI Maturity Matrix, Boston Consulting Group (BCG)
BCG’s AI Maturity Matrix provides a comprehensive overview of the AI landscape across 73 economies, focusing on two key aspects. First, assess each economy’s vulnerability to AI-driven shifts, including job losses and productivity gains across industries. Second, assess each economy’s readiness to avoid risks associated with AI while leveraging its potential to stimulate economic growth.
The report provides tailored recommendations for different groups to guide policy makers and provides an interactive dashboard to explore the analysis in more detail.
BCG Managing Director Christian Schwazler said: “This first-of-its-kind study provides a broad perspective on global adoption and shows that while most economies are gradually embracing AI, “This study reveals that a small group of influential pioneers are emerging as global leaders.” Partner, Director of the BCG Center for Public Economics and co-author of the report. “This handful of key markets stand to gain significant economic advantages and are uniquely positioned to shape how humanity engages with this innovative technology.”
Six sectors most exposed to AI-driven change
According to the report, six sectors are most likely to be affected by AI-induced changes: information and communications, high-tech products, retail, financial services, public services, and automotive manufacturing. Economies with the highest proportion of sectors most exposed to AI are among the most exposed to disruption in the world. These include Luxembourg (financial services account for almost 30% of GDP), Hong Kong (financial services 22%, business services 22%) and Singapore (business services 18%, retail trade 16%, financial services 14%). It will be.
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Economies with industrial sectors that are less susceptible to AI disruption will be less affected. Such sectors include construction, agriculture, furniture manufacturing, etc. These countries include Indonesia (13% of GDP in agriculture and 11% in construction), India (17% in agriculture and 8% in construction), and Ethiopia (36% in agriculture).
Measuring AI readiness using the ASPIRE index
AI readiness refers to an economy’s ability to effectively implement and integrate AI. The survey measures readiness across the six dimensions that make up BCG’s ASPIRE index: ambition, skills, policy and regulation, investment, research and innovation, and ecosystem.
Of the 73 countries assessed, only five countries classified as AI pioneers have achieved high levels of readiness. Pioneer also leads in skills, R&D, ecosystem and investment. When it comes to skills, the US and Singapore stand out for their strong AI talent pools, which are critical to driving innovation. The US leads the investment space with its sophisticated capital markets and abundance of AI unicorns. In the R&D race, mainland China leads in patents and AI academic papers.
Six different archetypes of AI adoption
A combined analysis of AI exposure and readiness reveals six distinct adoption groups:
AI Pioneer: A pioneer in AI adoption, building a strong infrastructure and leveraging technology in a variety of areas. All pioneers invest generously in research and development and employment, and their education systems are filled with highly skilled talent. Over the next few years, AI will become a progressively larger share of the pioneers’ GDP as these actors provide more and more AI technologies, services, skills, and investments to the world.
Stable competitors: These economies have a higher proportion of high-risk service sectors, but their risks are balanced by high preparedness. This group is mainly dominated by high-income European economies such as Germany, which have high exposure due to large-scale information and communication technology (ICT) and advanced manufacturing sectors. Malaysia stands out as a non-European leader with its government’s focus on AI through a national AI roadmap, technology hubs, and university training. This shows how public sector leadership can foster technological maturity and competitiveness in emerging economies.
Leading Competitors: These are mainly economies with low exposure to AI due to a relatively high proportion of industrial and/or resource-based sector composition. This lower level of exposure is the main difference between emerging and stable candidates, but governments in this subgroup are pushing AI adoption with the same commitment as stable candidates. India, Saudi Arabia, and Indonesia are notable examples of this group.
Gradual practitioners: These are typically upper-middle-income and lower-middle-income countries that are adopting AI at a moderate pace. Their economies include low-tech sectors such as tourism, textiles, wood manufacturing, and agriculture, but the adoption of AI is not yet mandatory for businesses.
Exposed practitioners. This group includes developing and developed countries that are more vulnerable to AI disruption due to more at-risk sectors and lower readiness. Stakeholders here need to accelerate AI adoption and mitigate potential risks. While these countries may currently have gaps in their AI efforts and readiness, they are well-positioned to quickly establish themselves with investments in infrastructure and education. Notable economies in this group include Malta, Cyprus, Bahrain, Kuwait, Greece, and Bulgaria.
Emergence of AI: These economies are in the early stages of AI adoption. Reaching a basic level of AI integration and competitiveness requires building a foundational strategy and infrastructure. These countries lack a national AI strategy or a similarly holistic approach to AI. Skilled labor and investment are often in short supply, as are research papers, patents, and startup-related activities.
Positioning governments for success in an AI-driven future
This report proposes a series of initiatives for each archetype across three themes:
Enabling AI: Establishing the building blocks for the emergence of AI
Accelerate AI: Customize ASPIRE levers for AI candidates and practitioners
Amplifying AI: Driving the global AI agenda for AI pioneers
These recommendations provide an economy-wide approach to AI readiness that economic managers can apply to drive sectoral transformation.
“Policymakers need to act decisively to prepare for an AI-driven world by strengthening resilience, productivity, job creation, modernization and competitiveness,” said BCG Managing Director and Partner. said Aparna Bharadwaj, global leader of the company’s Global Advantage practice. Co-author of the report. “Our research provides a practical framework to guide the rapidly evolving AI landscape, enabling economies to harness AI’s transformative potential for sustainable growth and societal well-being. .”
Download the publication here:
https://www.bcg.com/publications/2024/what-economies-are-ready-for-ai
Access our interactive dashboard here to easily view your AI efforts and explore factors such as sector developments, exposures, investments, regulations, and disruptive readiness across the economies we study.
Media contact:
Eric Gregoire
+1 617 850 3783
gregoire.eric@bcg.com
About Boston Consulting Group
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