AI Preparedness Index in North America

Published 2026-10-16 · 24Peaks Research

AI Preparedness Index in North America

The AI Preparedness Index is an IMF-constructed composite score that gauges how well a country's economy, labor market, and institutions are positioned to absorb and benefit from artificial intelligence adoption. In North America, the United States and Canada rank among the global leaders, with scores in the highest global tier as of the latest available year, while Mexico trails the regional average. The index does not measure AI capability itself; it measures readiness — infrastructure, skills, innovation, and regulatory foundations — which makes it a useful forward-looking signal for investors tracking productivity and labor-market risk.

What the AI Preparedness Index Measures

The index, introduced by the IMF in 2024 using data centered on 2023, is built from four broad pillars, each populated by sub-indicators drawn from public sources such as the ITU, the World Bank, and various national statistical agencies:

• Digital infrastructure: internet penetration, broadband quality, mobile connectivity, and access to electricity and data networks.
• Human capital and labor market policies: education attainment, digital skills, training systems, and the flexibility of labor markets to reallocate workers.
• Innovation and economic integration: research and development spending, patent activity, trade openness, and the business environment for technology firms.
• Regulation and ethics: legal frameworks covering data protection, AI governance, accountability, and the broader rule of law.

Each sub-indicator is normalized, aggregated, and expressed as a score bounded roughly between 0 and 1. Higher values indicate greater preparedness. The IMF publishes the index as part of its broader work on AI and the future of work, and it is designed to be comparable across more than 170 economies. Because some inputs are survey-based or updated at different frequencies, year-to-year comparisons should be treated with care; as of the latest available year, the North American scores reflect the most recent vintage of each underlying series.

Why the Index Matters for Investors

AI is expected to reshape productivity, wage structures, and corporate margins, but the economic payoff is uneven. The AI Preparedness Index offers a structured way to assess which economies are likely to convert AI investment into measurable output gains, and which face transition costs.

• Productivity signal: Economies with stronger digital infrastructure and innovation capacity tend to adopt new technologies faster, supporting GDP growth and corporate earnings.
• Labor-market risk: IMF analysis suggests that in advanced economies, a large share of jobs — roughly 60% in some estimates — are exposed to AI, with a meaningful portion potentially complementing rather than displacing workers. Preparedness determines whether that exposure becomes a net positive.
• Policy watchlist: The regulatory pillar helps investors anticipate compliance costs, data-localization rules, and AI governance regimes that can affect multinational operations.
• Capital flows: Countries scoring higher on preparedness tend to attract more technology-related foreign direct investment, which can feed back into currency and equity-market performance.

For North America specifically, the index is a rough proxy for how quickly the region can translate its current AI leadership into broad-based economic gains, rather than concentrating benefits in a handful of firms and metro areas.

Recent Trends by Region in North America

North America is not a single story. The region's aggregate position masks wide dispersion.

The United States sits in the top global tier. Its advantages are concentrated in innovation, venture funding, cloud infrastructure, and a dense ecosystem of AI research institutions and firms. Its weaker spots typically relate to uneven digital access across rural areas and the absence, so far, of comprehensive federal AI legislation — though sectoral guidance and state-level rules have proliferated. As of the latest available year, the U.S. score places it among a small group of economies the IMF classifies as most prepared.

Canada also ranks highly, supported by strong education metrics, a competitive research base, and early national AI strategies. Its challenges are more economic than institutional: commercialization of research, productivity growth, and the scale of domestic AI firms relative to the U.S. Canada's regulatory environment has moved forward with proposed AI legislation, which affects the regulatory pillar depending on the reference year.

Mexico occupies a different position. Its score is typically below the North American average, reflecting gaps in broadband coverage, digital skills, and R&D intensity. Mexico's strength lies in its integration with North American supply chains, particularly in manufacturing, where AI adoption could raise competitiveness if infrastructure and training keep pace. As of the latest available year, Mexico's index value is closer to the global middle than to the regional top.

Regionally, the trend across North America has been upward on infrastructure and innovation metrics, with slower movement on labor-market and regulatory indicators. That gap — fast technology, slower policy and skills adaptation — is the central tension the index captures.

Comparison Examples

The table below illustrates how North American economies compare with a major peer. Values are approximate and reflect the latest available data vintage; exact figures should be verified against the current series.

Scores are composite and not directly comparable to single-variable metrics such as internet penetration. Small differences between countries in the same tier should not be over-interpreted, since aggregation weights and reference years can shift rankings by a few positions.

Limitations of the Index

Like all composite indicators, the AI Preparedness Index has constraints that investors should weigh:

• Aggregation choices matter. Different weighting of pillars can change rankings, and the index reflects the IMF's judgment about what constitutes preparedness.
• Data lags. Many inputs are annual and published with a delay, so the index may not capture rapid changes in AI adoption or regulation.
• Qualitative inputs. Regulatory and governance measures rely partly on expert assessment, which introduces subjectivity.
• Adoption vs. readiness. A high score signals potential, not realized AI deployment or productivity gains.
• Coverage gaps. Informal economies, firm-level adoption, and subnational variation — important in large federal systems like the U.S., Canada, and Mexico — are not fully represented.

For these reasons, the index is best used alongside firm-level data, national statistics, and sector analysis rather than as a standalone investment signal.

FAQ

What is the AI Preparedness Index?

It is a composite metric developed by the IMF to measure how ready an economy is to adopt and benefit from artificial intelligence. It combines indicators across digital infrastructure, human capital, innovation, and regulation. Scores are published for more than 170 economies as of the latest available year.

How do North American countries rank?

The United States and Canada rank in the highest global tiers, while Mexico typically scores in the middle range. This reflects strong innovation and infrastructure in the U.S. and Canada, and persistent gaps in broadband, skills, and R&D in Mexico. Rankings should be checked against the most recent vintage, which 24Peaks hosts.

What data goes into the index?

Inputs come from sources such as the ITU, World Bank, and national statistical agencies, covering internet access, education, R&D spending, trade openness, and AI-related regulation. Each sub-indicator is normalized and aggregated. The IMF updates the underlying data as new vintages are released.

Why does the index matter for investors?

It helps gauge which economies are likely to convert AI investment into productivity and earnings growth, and which face higher transition costs. It also highlights regulatory risk that can affect multinational technology operations. This makes it useful for country allocation and sector analysis.

What are its main limitations?

Composite weighting, data lags, and qualitative regulatory inputs can all affect the score. The index measures readiness, not actual AI adoption or output gains. It should be used with firm-level and sector data rather than in isolation.

Compare the AI Preparedness Index across North American economies and global peers on the 24Peaks workbench.