AI is already transforming industries and starting to reshape economies and is poised to profoundly shape the future of economic development over the next few years. The expansive scale of this growth makes AI an economic priority in every region around the globe.
However, new Boston Consulting Group (BCG) research has established that most economies are underprepared for AI-driven disruption. The study, released today, shows that over 70% of the economies studied score below average in critical areas such as ecosystem participation, skills, and research and development.
Six Sectors Are Most Exposed to AI-Driven Changes
According to the report, there are six sectors that are most exposed to AI-driven change: information and communication, high-tech goods, retail, financial services, public services, and motor vehicle manufacturing. Economies with a high share of sectors that are most exposed to AI are among the world’s most exposed to disruption. These include Luxembourg (with financial services making up almost 30% of GDP), Hong Kong (22% financial services and 22% business services), and Singapore (18% business services, 16% retail, 14% financial services).
Economies with industry sectors that are less susceptible to AI disruption are less exposed. Such sectors include construction, agriculture, and furniture manufacturing; countries include Indonesia (13% agriculture and 11% construction of GDP), India (17% agriculture and 8% construction), and Ethiopia (36% agriculture).
Of the 73 economies assessed, only five—categorized as AI pioneers—have achieved a high level of readiness. Pioneers are also out in front in skills, R&D (research and development), ecosystems, and investments. In skills, the US and Singapore stand out with robust AI talent pools, crucial for driving innovation. The US leads in investing, driven by its sophisticated capital markets and the abundance of AI unicorns.
In the R&D race, Mainland China is leading in patents and AI academic papers.
https://www.bcg.com/publications/2024/which-economies-are-ready-for-ai
