Regime characteristics, public policy, and artificial intelligence readiness: a cross-national analysis

There has been much policy debate over which states are currently leading the global Artificial Intelligence (AI) race. While speculation exists regarding whether the U.S. or China is ahead in AI development, empirical research has been limited in examining how the political and governance characteristics of states affect AI readiness (i.e. how prepared states are to incorporate AI into their societies). Thus, this study examines how regime characteristics affect the AI readiness of states. In conducting a cross-national analysis of 140 states from 2020 to 2023, including standard controls and controlling for potential endogeneity, we find that states with more democratic governance, lower corruption, and stronger rule of law and property rights protections have greater levels of AI readiness. We find that these states are better prepared to integrate AI into their societies, particularly in terms of their governance strategies regarding AI development, the nature of their technology sectors, and the quality of their data and infrastructure. These findings have important implications for understanding how regime characteristics and public policy may influence AI readiness globally.