Is Türkiye Ready for AI?
Insights from the IMF Report
After coming across an interesting visual today, I wanted to share a quick summary of the situation.
Global AI Preparedness Level
IMF's "Gen-AI: Artificial Intelligence and the Future of Work" report presents an index that shows how prepared countries are for AI technologies. This index is based on four main components: digital infrastructure, human capital, labor policies, innovation, and regulation. The top countries in terms of AI readiness include the US, the UK, Germany, Japan, and China. These countries stand out due to their robust digital infrastructure, high education levels, advanced innovation capabilities, and effective regulatory frameworks.
Why Are These Countries So Prepared?
United States:
Strong Digital Infrastructure: The US boasts high-speed internet access and advanced computing infrastructure.
Advanced Education and Research: Universities have strong AI programs and research centers.
High Innovation Capacity: Innovation hubs like Silicon Valley constantly work on new technologies and innovations.
United Kingdom:
Education and Skill Development: AI and data science-focused education programs are widespread.
Public and Private Sector Collaboration: There are strong partnerships between the government and private sector.
Regulatory Framework: The UK is preparing strong and detailed regulations for AI use. Comprehensive approaches to AI and data science instill confidence in investors and the workforce.
China:
Rapid Technology Adaptation: Massive government investments and rapid technology adoption are key highlights. Having resources to operate independently from external dependencies is a significant advantage.
Extensive R&D Investments: There are high levels of R&D investments and innovation incentives.
Wide Digital Ecosystem: Major tech companies like Alibaba, Baidu, and Tencent lead in AI development and application.
European Union:
Comprehensive Regulations: The EU enacts detailed regulations to ensure the ethical and safe use of AI technologies. The most comprehensive regulation currently is the EU AI Act. Draft regulations and other digital-focused regulations including AI perspectives make a significant difference.
Research Teams: Having teams like the recently established AI Office working professionally under the public umbrella is crucial.
Innovation Support: Programs like Horizon 2020 support R&D and innovation.
Education and Skill Development: EU countries place great importance on AI and data science education and implement talent development programs in these fields.
Türkiye's Situation and Shortcomings
Türkiye is not yet at the desired level of AI readiness. To improve its AI readiness level, Türkiye needs to address the following key shortcomings:
Digital Infrastructure:
Türkiye's digital infrastructure is weak compared to advanced technology countries. The lack of high-speed internet access and advanced computing infrastructure hinders the effective use of AI technologies.
Human Capital and Labor Policies:
There is a shortage of a digitally skilled workforce in Türkiye. The education system lacks sufficient AI and data science-focused programs, making it difficult for the workforce to adapt to these technologies.
Innovation and Economic Integration:
The AI innovation ecosystem is not sufficiently developed. The lack of R&D investments and private sector collaborations hinders the development of innovative AI solutions.
Regulation and Ethics:
There are insufficient legal regulations to ensure the ethical and safe use of AI technologies. Strengthening data protection and privacy policies is necessary.
Policy Recommendations
To boost Türkiye's AI readiness level and become globally competitive, the following steps need to be taken:
Strengthening Digital Infrastructure:
High-speed internet access should be widespread across the country, and advanced computing infrastructure should be established. This will make AI technologies more accessible to a wider user base.
Education and Skill Development:
AI and data science-focused programs should be integrated into the education system, and AI research centers should be established at universities. This will allow young talents to specialize in AI.
R&D and Innovation Investments:
More funds should be allocated to AI research and innovations, and public-private sector collaborations should be encouraged. Supporting the start-up ecosystem and providing funding for innovative projects will foster the emergence of new AI ventures.
Strengthening the Regulatory Framework:
Legal regulations should be made to promote the ethical and safe use of AI technologies, and data protection and privacy policies should be strengthened. This will increase the confidence of individuals and organizations in AI technologies.
International Collaborations:
Collaborations with leading countries and international organizations in AI should be developed. Participation in international AI research projects will enable Türkiye to play a more active role in the global AI community.
Workforce and AI Transformation
AI technologies are causing significant changes in the labor market. Adapting to these changes will take time for workers. Some workers may transition to high AI complementarity roles, while others may struggle with adaptation.
Education and Age Factor:
Education level and age play a crucial role in job transitions. University graduates, in particular, are more advantageous in transitioning to high AI complementarity jobs. However, less educated workers and older workers may struggle to adapt to these changes.
Türkiye is fortunate in this regard. We have a young population of 27 million aged 0-21. Directing the interest of our youth towards AI and technology will set us apart.
Income Distribution:
The effects of AI on the labor market also impact income distribution. Workers transitioning to high AI complementarity jobs generally earn higher wages, while those moving to low AI complementarity jobs may experience income loss.
Differences Between Countries:
The effects of AI on the labor market vary greatly between countries. Advanced economies may adapt more quickly to the changes brought by AI, while the process may progress more slowly in developing countries.
Conclusion
For Türkiye to improve its AI readiness level and be among the leading countries represented by the dark blue color, the strategic steps outlined above need to be taken. Education and skill development, R&D investments, digital infrastructure improvements, regulatory framework strengthening, and fostering public-private sector collaborations and international partnerships will significantly contribute to Türkiye becoming a leader in AI technologies. Achieving these goals will play a crucial role in Türkiye's future digital transformation and potential investments to close the current account deficit.