Asik SyedIndia and China have recently stood out as the only developing nations making significant private investments in Artificial Intelligence (AI). According to the UNCTAD Frontier Technologies Readiness Index, India’s strides in technology adoption and AI capabilities have placed it among the top-performing countries globally. This momentum is critical, as AI is set to reshape economies and the global job landscape in the coming years.
About UNCTAD Frontier Technologies Readiness Index
The UNCTAD Index evaluates how prepared countries are to adopt and benefit from frontier technologies, based on factors like ICT infrastructure, skills, R&D, and financial access. In 2023, India jumped to 36th place, up from 48th in 2022—a leap driven by improvements in human capital, such as better education and an increase in high-skill jobs. Nations like Bhutan, Morocco, Moldova, and Timor-Leste also made notable progress on similar grounds.
Global AI Investment Trends
AI funding remains highly concentrated. The United States leads with a staggering $67 billion, representing 70% of global AI investment in 2023. China follows with $7.8 billion, while India stands at 10th place, drawing $1.4 billion in investments. These figures highlight the disparities in AI accessibility and resources across countries.
AI’s Transformative Impact on Jobs
The global AI market is projected to hit $4.8 trillion by 2033, with the potential to impact up to 40% of jobs worldwide. While AI can significantly boost productivity, it also raises alarms about automation and job loss. The report underscores the need for proactive reskilling and upskilling to ensure the workforce can adapt and thrive in an AI-driven future.
Government Support and Policy Initiatives
India’s government has taken proactive steps to foster AI innovation. Through initiatives like the India AI Mission, there’s a push to expand AI education, create centres of excellence, and promote collaboration between the government, private sector, and academia. These policies are instrumental in building a strong AI ecosystem.
Tech Specialisation Across Nations
Technological strengths vary by country. India is making strides in nanotechnology, while Germany excels in wind energy. These specialisations reflect the unique priorities, resources, and strategic interests of each nation in the global tech landscape.
Industrialisation: A Path to Growth
For many developing nations, industrialisation continues to be a cornerstone of economic advancement. Countries like Brazil, China, and India showcase how robust manufacturing sectors can reduce poverty, generate jobs, and drive technological innovation across industries.
The Road Ahead: Bridging the AI Divide
Despite progress, developing nations face major hurdles in accessing and scaling frontier technologies. The centralisation of AI infrastructure among a few global powers creates barriers to entry. To stay competitive, countries like India and China must continue to invest, innovate, and build inclusive tech ecosystems.
Neha Baruah
