AI Investment Potential Index: Mapping Global Opportunities for Sustainable Development

This paper examines the potential of artificial intelligence (AI) investment to drive sustainable development across diverse national contexts. By evaluating critical factors, including AI readiness, social inclusion, human capital, and macroeconomic conditions, we construct a nuanced and comprehensive analysis of the global AI landscape. Employing advanced statistical techniques and machine learning algorithms, we identify nations with significant untapped potential for AI investment.
We introduce the AI Investment Potential Index (AIIPI), a novel instrument designed to guide financial institutions, development banks, and governments in making informed, strategic AI investment decisions. The AIIPI synthesizes metrics of AI readiness with socio-economic indicators to identify and highlight opportunities for fostering inclusive and sustainable growth. The methodological novelty lies in the weight selection process, which combines statistical modeling and also an entropy-based weighting approach. Furthermore, we provide detailed policy implications to support stakeholders in making targeted investments aimed at reducing disparities and advancing equitable technological development.