IVA's President: some thoughts on AI

Dear IVA Friends,

When the 2025 edition of the Global AI Index is released after the summer, I hope Sweden will have made a significant climb from last year’s ranking of 25th. The United States topped the list in 2024 (no surprise there), followed by China. Then came Singapore, the United Kingdom, France, and South Korea. I imagine many of you raised an eyebrow reading that—so did I. Sweden, ranked 25th in a global AI index, trailing not only 11 other European countries but also Saudi Arabia and the UAE? Sweden, traditionally positioned among the top three in nearly all technology and innovation rankings.

The Global AI Index measures a country's AI capacity across multiple parameters. While such rankings should always be taken with a grain of salt, they do provide valuable insights.

France’s rise has been remarkable: in just a few years, they've surged to a top spot. This leap is said to be driven by major early investments in AI research and a rapid, robust AI infrastructure that supports the entire value chain—from research to real-world implementation.

So, what’s behind Sweden’s relatively low ranking? The AI Index data suggests it primarily comes down to the strategic initiatives governments undertake and how comprehensive those efforts are—as well as the level of investment. In this area, Sweden ranks 57th globally, not even in the top quartile. Other areas where Sweden lags are AI development, implementation, and infrastructure.

The only area where Sweden receives top marks is the so-called operational environment—reflected in strong regulatory frameworks and a generally positive public attitude toward AI. That’s both encouraging and important.

What conclusions can we draw from this? Let me highlight a few key areas.

Artificial intelligence represents a technological paradigm shift—one that could transform society as thoroughly as electrification once did, perhaps even more so. And this shift is happening far faster than anything we’ve seen before. Paradigm shifts reset the playing field: everything starts over. There’s no guarantee that those who’ve led in the past will lead in the future. The global landscape is being fundamentally reorganized.

Sweden has long had strong industries that are quick to adopt new technologies and harness their benefits. That’s one of the reasons why Swedish manufacturing has maintained global leadership. Many large Swedish companies are now working systematically to integrate AI into their production processes. But what about our small and medium-sized enterprises? They account for 80 percent of new job creation in Sweden. That’s why the level of digitalization and AI adoption in this sector is critical—and must be addressed.

AI can no longer be treated as a technical concern delegated to IT or the CTO. It must be embedded across every function of the organization. Or, ideally, this should already be the case.

We need to act in ways that may be unfamiliar to us—and, frankly, a bit “un-Swedish”: embracing disruption and creative destruction in true Schumpeterian spirit. Test and test again. Build the airplane while flying it, so to speak.

This is where the Swedish government has a crucial role to play. Sweden needs a bold, comprehensive national ambition for AI implementation across every sector. We have a history of successful transformation initiatives we can draw inspiration from: I’m thinking of the Production Leap launched by Teknikföretagen and IF Metall in 2007, and the Home PC Reform in 1997, which led to the distribution of nearly 900,000 personal computers to individuals across the country.

It’s a matter of both resources and direction. When the Government’s AI Commission presented its roadmap in November 2024, it included a long list of concrete, actionable recommendations for immediate government follow-up. It’s encouraging that several of these proposals are now being implemented. The Commission’s recommendations target many of the areas where Sweden, according to the Global AI Index, is currently falling behind.

But maybe what we need is an even more unified, all-encompassing effort. I would like to see the government launch a transformative initiative on par with the Production Leap or the Home PC Reform—a national AI initiative that engages all sectors of society. One example I’d like to highlight is the AI Reform Foundation, which has taken a truly impressive, holistic approach to driving AI adoption in Sweden.