The International Monetary Fund (IMF) has ranked Nigeria as significantly underprepared for the advent of artificial intelligence (AI), scoring the country just 0.34 on its AI Preparedness Index.
The IMF’s AI Preparedness Index measures a country’s readiness to harness the benefits and manage the risks associated with AI technology, according to the international financial institution that serves as the financial agency of the United Nations.
AI, the IMF says, holds the promise of transforming economies by increasing productivity, boosting economic growth, and raising incomes. However, the report also warns of potential downsides, including the possibility of AI wiping out millions of jobs and exacerbating inequality.
IMF Research indicates that AI could threaten 33% of jobs in advanced economies, 24% in emerging economies, and 18% in low-income countries. Despite these risks, AI also offers significant opportunities to enhance the productivity of existing jobs, create new employment opportunities, and even spur the development of entirely new industries.
The IMF report further state that emerging market economies and low-income countries, including Nigeria, generally have smaller shares of high-skilled jobs compared to advanced economies. This means they may experience fewer immediate disruptions from AI. However, many of these countries lack the necessary infrastructure and skilled workforce to fully leverage AI’s benefits, potentially worsening global inequality.
Wealthier economies tend to be better equipped for AI adoption than low-income countries. The IMF’s new AI Preparedness Index Dashboard, which assesses 174 economies, is based on four key areas: digital infrastructure, human capital and labor market policies, innovation and economic integration, and regulation.
“Under most scenarios, AI will likely worsen overall inequality, a troubling trend that policymakers can work to prevent. To this end, the dashboard is a response to significant interest from our stakeholders in accessing the index. It is a resource for policymakers, researchers, and the public to better assess AI preparedness and, importantly, to identify the actions and design the policies needed to help ensure that the rapid gains of AI can benefit all,” according to the IMF.
“AI can also complement worker skills, enhancing productivity and expanding opportunities. In advanced economies, for example, some 30 percent of jobs could benefit from AI integration. Workers who can harness the technology may see pay gains or greater productivity, while those who can’t may fall behind. Younger workers may find it easier to exploit opportunities, while older workers could struggle to adapt.”
The IMF report on AI highlighted that policymakers in advanced economies should focus on expanding social safety nets, investing in worker training programmes, and prioritising AI innovation and integration. These countries should also coordinate globally to strengthen regulations that protect people from potential risks and abuses and build trust in AI technologies.
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