In a groundbreaking revelation from the United Nations, India’s position in the realm of artificial intelligence (AI) investments has gained notable attention. A recent report indicates that both India and China stand out as the only developing nations significantly investing in AI as of 2023. India has impressively secured the tenth spot globally in private AI investments, a clear sign of its growing technological prowess.

India’s Rising Rank in AI Readiness

The 2025 Technology and Innovation Report, published by the UN Conference on Trade and Development (UNCTAD), sheds light on India’s advancements in technology readiness. The country has climbed to 36th place in the Readiness for Frontier Technologies index, up from 48th in 2022. This index evaluates various factors such as:

• ICT Deployment
• Skills Development
• Research and Development (R&D) Activity
• Industrial Capacity
• Access to Finance

India’s performance in these categories reveals a mixed picture, ranking 99th for ICT, 113th for skills, 3rd for R&D, 10th for industrial capacity, and 70th for financial access.

Global Landscape of AI Investments

The report highlights that the United States is the leader in private AI investment, contributing a staggering $67 billion in 2023, which accounts for 70% of the total global investment in this field. Following the US, China ranks second with an investment of $7.8 billion, while India holds the tenth position with $1.4 billion. The potential of the AI market is immense, projected to reach $4.8 trillion by 2033, making it a cornerstone of digital transformation.

Challenges and Opportunities in AI

Despite the promising outlook, the report underscores significant challenges, particularly regarding access to AI infrastructure and expertise, which are heavily concentrated in a few economies. A mere 100 firms, predominantly from the US and China, account for 40% of global corporate R&D spending. As AI technology evolves, it is estimated that 40% of jobs worldwide could be affected, potentially leading to increased productivity but also raising concerns about job displacement.

• Key Concerns:
  • Risk of widening inequality.
  • Displacement of low-cost labor in developing economies.

Yet, the narrative around AI is not solely about job loss. It also holds the potential to create new industries and empower the workforce. The report emphasizes the necessity of investing in reskilling and upskilling to enhance employment opportunities rather than diminish them.

Notable Performers Among Developing Nations

Countries such as Brazil, China, India, and the Philippines are making strides in technology readiness, with the report noting that some developing nations are outperforming expectations relative to their GDP. It suggests that while wealthier nations typically excel in technological readiness, countries like India exhibit surprising advancements.

The report also highlights cloud infrastructure, where China and the US dominate the services market, with India and Brazil also making their mark. Additionally, the US leads in the number of GitHub developers, followed closely by India and China, indicating their growing influence in the global tech landscape.

India’s Government Initiatives Driving AI Growth

India’s impressive ranking can be attributed to robust government policies that foster collaboration among the private sector, academia, and research institutions. Notable initiatives include the India AI Mission, approved by the Cabinet in 2024, aimed at enhancing the AI ecosystem by increasing the number of AI courses in educational institutions, particularly in smaller cities.

The report emphasizes the importance of these policy efforts, stating that countries like China, Brazil, and India are cultivating large pools of AI talent, which is crucial for their technological advancement.

Specialization in Technology Fields

Furthermore, the report notes that different nations tend to specialize in specific technology areas, highlighting:

• Germany: Wind energy
• India: Nanotechnology
• Japan: Electric vehicles
• South Korea: 5G technology

This specialization is essential for driving economic growth and job creation, as demonstrated by the industrialization success stories from countries like Brazil, China, and India.

In conclusion, as the world rapidly evolves under the influence of AI and other frontier technologies, developing countries must strategically prepare to harness these advancements. The insights from the UNCTAD report underscore not only the challenges but also the vast opportunities that lie ahead.