Emerging markets' AI readiness still lag behind - G42/Economist Impact
Talent, investment, and infrastructure gaps dominate report findings
#Global #AIReadiness – Emerging markets face significant hurdles in AI readiness, according to Ready, Set, AI, a report released by Abu Dhabi-based AI powerhouse G42 in partnership with Economist Impact. Surveying 700 senior leaders across seven countries, the report reveals only 12% of businesses feel fully prepared to adopt AI, while 20% cite infrastructure limitations as a primary obstacle. Talent shortages and underinvestment compound these challenges, despite a growing appetite for AI and significant potential economic benefits.
SO WHAT? – One of the Middle East's biggest AI success stories, in less than eight years G42 has grown from a government services and solutions provide to a multi-billion dollar holding group. G42 companies span AI R&D, cloud services, AI and data infrasctructure, digital government services, geospatial data and satellite services. In recent years the group has become increasingly active in key African, Asian and Middle Eastern markets. So, the new Ready, Set, AI report aligns with both G42's expertise and its focus markets.
Some highlights from the Ready, Set, AI report:
Abu Dhabi-based AI powerhouse G42 - in partnership with Economist Impact - has released a new report on AI readiness in emerging markets, called Ready, Set, AI. According to the report, emerging markets face significant hurdles in AI readiness such as limitations in infrastructure, talent and investment.
The report survey included leaders from Azerbaijan, Egypt, India, Indonesia, Kazakhstan, Kenya, and Turkey, with respondents spanning medium to large enterprises.
Only 12% of respondents report being fully AI-ready, while 40% acknowledge the need for significant operational changes.
Infrastructure remains a significant barrier, with 84% identifying inadequate computational systems as a challenge and 81% lacking quality training data.
Talent shortages affect 45% of businesses, exacerbated by brain drain and limited access to advanced education.
Despite challenges, larger companies (over 1,000 employees) show greater readiness, with 53% actively developing custom AI tools.
Governments in emerging markets, such as Indonesia and Kazakhstan, are launching national strategies to bridge digital divides and foster public-private collaboration.
India leads in private AI investment among surveyed nations, with $1.39 billion invested in 2023.
Public-private partnerships, such as Egypt’s collaboration with Huawei and UNESCO, are helping to scale AI education and infrastructure.
ZOOM OUT – Emerging markets are at a pivotal moment. While infrastructure and talent shortages are acute, these regions can leverage unique opportunities to leapfrog legacy systems. International investment in AI, cloud and data infrastructure in key African, Asian and Middle Eastern markets has ramped up as demand for AI and cloud have increased. With appropriate government strategies and policies, emerging markets can align with global AI advancements, reduce inequalities and foster innovation in critical sectors like healthcare, education, and finance. However, without targeted action, nations risk falling behind as global AI adoption accelerates.
LINKS
Ready, Set, AI landing page (Economist Impact)
Data story (Economist Impact)
Infographic (Economist Impact)
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