Key factors in the adoption and development of AI.

 

The information offered in the frontier technologies readiness index can be complemented by a detailed assessment of each country’s strengths and weaknesses in the adoption and development of AI. A technological wave unfolds in several phases. The initial development phase involving conceptualization or invention is often lengthy and costly. The adoption phase occurs when the technology begins to gain traction and early adopters start applying it to real-world problems. Finally, as the technology is diffused, it becomes more accessible and affordable and is more widely integrated into economies and societies. Widespread adoption often drives further innovation, which can lead to a renewed development phase. The initial development of new technologies is typically driven by developed countries. 

Developing countries mostly only adopt frontier technologies, although some of the more technologically advanced developing countries may soon start adapting the technologies to their own conditions, which contributes to further development. This mirrors the classic company dilemma of whether to adopt innovations or to develop them, a choice that depends on contextual factors and own capabilities. 

Moving from AI proof-of-concept to largescale roll-out may be more challenging than expected, and it is important to identify areas in which AI can be strategically deployed to make a real impact. The rate of diffusion of AI among citizens and society depends on basic factors, including access to the Internet, electricity and digital devices, as well as basic and AI-relevant digital skills. While adoption leverages those technologies that best align with existing socioeconomic structures and needs, development involves a more active role in shaping the direction of technological change. 

Adoption

 AI adoption involves using existing AI technologies to improve tasks and business processes, as well as adapting AI systems to particular sectoral needs. Most of the evidence on AI adoption comes from advanced economies in which large businesses are increasingly integrating AI into their practices and services. In 2024, a global survey showed that 72 per cent of large businesses used AI in some capacity. To date, they are largely using generative AI (GenAI) for the marketing and product development of information technology functions and less in manufacturing or supply-chain management. Most of this activity is by larger firms that have the greatest resources, and the share of AI users in firms with more than 250 persons is generally double that of small and medium enterprises (SMEs). In some countries, differences may be even greater. In Italy, for example, one study showed that the probability of investing in AI could be more than five times higher for larger firms than smaller ones . It should be noted that a comprehensive understanding of AI adoption is generally hindered by a shortage of systematic evidence, particularly from developing countries, which may constrain the capacity to design effective policies and interventions.