A recent report from the United Nations Conference on Trade and Development (UNCTAD) indicates that India and China are the only developing nations with substantial private investment in artificial intelligence (AI) in 2023. India holds the tenth position globally, with a notable investment of $1.4 billion, showcasing its increasing relevance in the AI sector.
This data is part of the 2025 Technology and Innovation Report, which outlines India’s progress in technology readiness. The report reveals that in 2024, India climbed to 36th place in the ‘Readiness for Frontier Technologies’ index, up from 48th in 2022. This index measures a country’s ability to adopt and adapt to advanced technologies through various metrics including ICT deployment and research capabilities.
India’s specific rankings in different categories include 99th for ICT, 113th for skill development, 3rd for research and development, 10th for industrial capacity, and 70th for access to finance. The report highlights advances in human capital development, specifically mentioning that countries like Bhutan, India, Morocco, the Republic of Moldova, and Timor-Leste have improved their standings through enhanced educational opportunities and job skills.
Furthermore, the report emphasizes that scientific strength in AI is apparent in countries like China, Germany, India, the United Kingdom, and the United States. The US leads the world with a staggering $67 billion in private investments, while China follows in second place with $7.8 billion.
Looking ahead, the AI market is projected to reach $4.8 trillion by 2033, coinciding with an essential need for global access to AI technologies. However, the report warns that the concentration of resources in a few economies could exacerbate existing inequalities, with significant implications for job displacement and productivity increases.
Despite concerns regarding job losses, the report argues that AI can also drive the creation of new industries. Investing in workforce adaptation and upskilling is crucial to leverage the potential benefits of AI while mitigating its challenges.
The findings highlight a need for developing countries to enhance their preparedness for a tech-driven future. It emphasizes that nations with higher GDP per capita are generally better equipped for new technologies, yet cases like India demonstrate successful policy efforts and capabilities that exceed expectations given their economic background.
Overall, as developing countries like India rise in AI investments and preparations, the global landscape of technology adaptation and economic advancement is set to transform significantly.
