India Ranks Among Top 10 Countries for AI Readiness: Report

The report by Boston Consulting Group (BCG) based on data from 73 economies showed that India ranks second globally in AI specialists, and third in research publications, with a strong base in AI-related patents. On the other hand, over 70 per cent of the economies studied score below average in critical areas such as ecosystem participation, skills, and research and development.

India has ranked among the top ten countries in terms of Artificial Intelligence (AI) readiness and has great prospects for public sector transformation through AI, according to a report. "Readiness" refers to an economy's ability to effectively and easily implement and integrate AI.

The report by Boston Consulting Group (BCG) based on data from 73 economies showed that India ranks second globally in AI specialists, and third in research publications, with a strong base in AI-related patents. On the other hand, over 70 per cent of the economies studied score below average in critical areas such as ecosystem participation, skills, and research and development.

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India's roadmap to emerging as an AI contender reflects the intensity of the nation's effort to assimilate technology into priority sectors such as agriculture, education, and healthcare. Being ranked among the world's top 10 most AI-ready countries, India has vast potential for public sector reforms through AI, notes Saibal Chakraborty, India Leader, Technology and Digital Advantage Practice, BCG.

India ranks second globally in AI specialists and 3rd in research publications, with a strong base in AI-related patents," added Mario Gonsalves, who leads BCG's Public Sector practice in India. AI exposure is also spread across several key sectors in India. Business services form 16 per cent of the GDP and have significant AI exposure, with potential improvements in administrative efficiency for government operations.

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Retail and wholesales constitute 10 percent of the GDP where AI could smooth public distributions and provide chain management to decrease wastage. Public services account for 6 percent of the GDP, and here again AI can improve upon the service delivery and emergency responses. Agriculture, forestry, and fisheries form 17 percent of the GDP. There AI can be applied in precision farming and risk assessment to promote productivity.

The construction sector, at 8 per cent of GDP, can use AI in the planning of infrastructure and assets. Arts, recreation, and personal services, also at 8 percent, can utilize AI in the management of public facilities. "Achieving this potential will demand a variety of steps: infrastructure-building efforts, strengthening AI research capabilities, and expanding efforts to train the workforce.". Investments in new research hubs, cloud capabilities, and data systems will be important. Expansion of AI education into rural areas and development of public-private collaborations are also critical, according to Chakraborty.

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The report also suggested frameworks of regulations and ensured the ethical use of AI in applications free of bias and responsible adoption of technologies. Aparna Bharadwaj, managing director, BCG urged policymakers to act decisively to prepare for an AI-driven world by enhancing resilience, productivity, job creation, modernisation, and competitiveness.

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