IMD World Digital Competitiveness

Preface

I am delighted to present the seventh edition of the IMD World Digital Competitiveness Ranking (WDCR).

Once again, we have analyzed the capacity of economies with differing levels of prosperity and resources–and of varying sizes and mentalities –to embrace new digital technologies and use them to transform government practices, business models, and society in general in a way that improves people’s lives. The total number of economies assessed in the 2023 WDCR is 64, with Kuwait making its début. Building “digital nations” – that is, creating systems that help companies and individuals to adopt digital tech seamlessly–should be a top priority for executives and anyone who has an influence on governmental activities in 2024. This year has been peppered with colorful talks on Artificial Intelligence (AI) with equal doses of concern, excitement, and conjecture as to how it could shake up our lives, starting with our jobs. AI is set to generate enormous productivity gains by automating many tasks that previously required human intervention, but I do not think it is about to replace our jobs, despite the hype. That said, tasks set to be replaced do include creative ones just as much as those that are routine. The increased efficiency that will ensue is going to reduce costs, but employment levels could also drop. AI will fill the gap though, as I see it, by providing personalized services, thereby boosting quality of life and satisfaction. This is, of course, in an ideal use case of the technology. While we measure no specific AI indicators as such in the WDCR –that is, we are not yet measuring the uptake of chatbots, say –AI sits silently at the core of several of the subfactors into which we group our hard data and survey replies. These are, namely: talent, regulatory and technological frameworks, and adaptive attitudes and business agility. On a data level, the quality of digital regulation, the funding available for technology development, and the degree of company agility are all data points that are enmeshed with AI. AI and cybercrime, too, exist in symbiosis. AI assists in password cracking via algorithms and in hacking via its automation abilities. As my colleagues address in their analytical report that follows my macro-outlook for digital competitiveness, a mere 5% of our 4,000 survey respondents (all global senior executives) said they hadn’t implemented any new cybersecurity measures in the past year. And yet, AI tools have also reduced the need for human involvement in aspects like malware development, scams, and extortion within cybercriminal organizations. This alone knocks the digital talent panorama off its shelf. Cyber security, then, becomes a clear example of the need to assess AI’s trade-offs and to take a very deliberate approach towards using it optimally. Countries cannot do this in isolation but need to lean on regional, if not global, institutions to do so. At the IMD World Competitiveness Center, we are, as ever, indebted to our partner institutes, the IMD alumni community, and our panel of experts for offering a combination of data and invaluable insights without which our rankings would be mere pipedreams and not the tools for positive action they have become. Thank you.

Professor Arturo Bris Director IMD World Competitiveness Center

World Competitiveness Center

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