Filenews 20 August 2024
Cyprus' readiness for the adoption of new applications of artificial intelligence (AI) is at 0.63, slightly lower than the average of developed economies of 0.68, according to an AI Preparedness Index (AIPI) compiled by the International Monetary Fund.
The IMF compiles the AIPI index for 174 countries from the sum of four sub-indicators concerning: countries' digital infrastructure, human capital and labour market policies, innovation and economic integration, and regulatory framework and ethical rules.
Each individual indicator, in turn, is compiled from a large set of indicators. Regarding digital infrastructure, the index for Cyprus is 0.17 compared to 0.18 for developed economies, 0.11 for emerging economies and 0.06 for low income countries (LIC).
In innovation and economic integration, the index for Cyprus stands at 0.15 against 0.16 for developed economies, 0.11 for emerging economies and 0.09 for low-income countries.
In human capital and labour market policies the index is 0.14 for Cyprus compared to 0.16 for developed economies, 0.13 for emerging economies and 0.09 for low-income countries.
Finally, for the regulatory framework and ethical rules, the index for Cyprus is 0.16 against 0.19 for developed economies, 0.12 for emerging economies and 0.08 for low-income countries.
The sources used by the Fund to compile the index include both survey data and surveys of perceptions, which are collected by eight institutions: The Fraser Institute, the International Labour Organization, the International Telecommunication Union, the UNCTAD, the International Postal Union, the World Bank and the World Economic Forum (WEF).
The IMF notes that the AIPI index incorporates several indicators that reflect subjective assessments and experiences of individuals. For this reason, the indicator should be seen as an indicative reference value to guide policy-makers in identifying areas for improvement rather than for a strict ranking purpose.
He also notes that measuring AIPI is difficult as the institutional prerequisites for integrating AI into the economy as a whole are still uncertain.
