Several market indicators clearly reflect that Artificial Intelligence (AI) is the primary focus for businesses. Both businesses and governments around the world have realized AI potential, as demonstrated by the billions of dollars of AI investments. In 2021, the global total corporate investment in AI reached $94 billion. A report indicates that global investment in AI companies has increased by 115 percent since 2020. It is also estimated that AI could contribute nearly $15.7 trillion to the world economy in 2030. Another report suggests that AI investments in the European Union (EU) will reach € 22.4 billion by 2025. Countries around the world are looking at increasing the use of AI in defense and security, thus placing AI at the center of dialogue about the military and financial capabilities of a nation. To compete in the age of AI, it is important for countries to have a comprehensive national AI strategy in place.
Need for a National AI Strategy for Countries
Here are the main reasons why countries require a robust national AI strategy.
- To boost the efficiency and effectiveness of a country’s armed forces and military.
- To facilitate economic growth and be a highly productive economy.
- To improve public well-being and increase the standard of living for the citizens.
- To ensure data governance transparency and find out ways to set up good data governance.
Countries that are leading in the use of AI view it as a strategic advantage in a world of segmented but highly intertwined international supply networks. On the other hand, developing countries consider it a way to outperform and deliver on the main development areas of their nation, while also trying to improve the lives of their citizens.
Several governments around the world are focusing on having an AI strategy in place to build a national AI ecosystem with responsible governance. Many countries already have a national AI strategy and plan in place, while several others are still creating one.
The AI value chain
Building a successful national AI strategy requires two approaches.
- Socioeconomic value-chain systems (strategies).
- Establishing long-term software and hardware capabilities across the entire AI value chain.
The hardware (infrastructure) element of the AI value chain is mainly clustered in some countries and key locations. For this purpose, governments will have to build long-term capabilities in hardware through bilateral agreements, trade treaties, etc.
The setup of Taiwan semiconductor manufacturing companies and factors in the United States reflects a medium- to long-term view of the industry to boost its capabilities. Despite being a monopolistic pioneer in many facets of AI innovation and research and home to a number of the world’s leading AI companies, it has been bolstering its hardware and fundamental capabilities in AI.
The building blocks for a successful AI strategy
Certain building blocks or ingredients are required for developing a strong and successful AI strategy that protects and proves citizens’ lives.
AI ecosystem aligned with the strategic goals of the country
It is essential to develop a national AI ecosystem that resonates with a country’s strategic priorities, along with its strengths and weaknesses.
Depending on the situation, the approach of countries towards creating an AI ecosystem will vary.
A country with a higher proportion of elderly citizens, for example, will focus on incentivizing AI automation.On the other hand, a country with a substantial youth population may focus on re-skilling, up-skilling, and training its workforce.
Focusing on STEM learning
- For a country to be AI-ready, it needs to focus on having a STEM talent pool.
- For this purpose, it is important to train students in STEM concepts and include STEM learning as an integral part of the school curriculum.
- A lack of STEM talent in the country may result in outsourcing.
- In any industry, STEM skills are a must for every individual.
- There is a need to prioritize STEM learning and education.
SMART goals
A solid AI strategy includes specific, measurable, achievable, relevant, and time-bound (SMART) objectives and key performance indicators (KPIs) for talent, infrastructure, R&D, industry restructuring, public-private partnerships, and guidelines and regulatory frameworks, including AI ethics and soft regulations.
Tracking the progress
While devising a robust national AI strategy, it is important for countries to track progress and measure its success using various KPIs. Countries need to create a comprehensive implementation roadmap with various assessment parameters and monitor indicators to keep track of the AI strategy over time.
The journey ahead
Given the rapid advancements in artificial intelligence and its capabilities, governments should plan, be prepared, and remain agile. A national AI strategy is a good starting point, but policymakers must adapt to technological innovations and evolving technological applications. The most essential element of an organized national AI strategy is keeping track of developments and ensuring that a country works towards its specific goals. International and multi-stakeholder collaboration is a step forward towards becoming an AI-ready nation.
Governments can help make sure that their countries are competing in the age of AI with the rest of the world by creating a national AI strategy that brings the benefits of AI technology to all citizens in an effective way.
