Arm AI Readiness Index Charting progress and opportunitiesin a transforming world. CONTENT Foreword6 Chapter 1: The Global State of AI Readiness: A Data-Driven Analysis8 Arm Sidebar: AI Everywhere: Arm’s Vision for the Future of ComputeAccelerated AI Everywhere #onArm From Cloud to EdgeThe Energy-Efficient Pervasive Compute Platform to Power GenAIThe Developer-Trusted Platform for Running AI WorkloadsEverywhere42434446 Chapter 3: Policy and Governance: Shaping the AI RegulatoryLandscape47 3.1 Understanding the Policy and Regulatory Pillar of AI3.2 Current Regulatory Frameworks3.3 International Cooperation3.4 Ethical Considerations3.5 Future Policy Directions3.6 Conclusion474953565962 Chapter 4: AI Safety and Risk: Navigating the Path to ResponsibleInnovation Foreword Throughout history, certain technological advancements havefundamentally altered our world. The printing press democratizedknowledge. The industrial revolution transformed manufacturing. Theinternet connected humanity in ways previously unimaginable. Today, westand at another such pivotal moment with artificial intelligence. WILL ABBEY,EXECUTIVE VICE PRESIDENTAND CHIEF COMMERCIALOFFICER, ARM Like those historic inflection points, artificial intelligence (AI) is not merely anincremental improvement on what came before; it represents a paradigmshift that is redefining how we work, communicate, create, and solveproblems. And like those earlier transformations, the full impact of AI willbe determined not just by the technology itself, but by how we choose todevelop, deploy, and govern it. What was once considered the realm of science fiction has become anintegral part of our daily lives and business operations. The AI ReadinessIndex report represents a comprehensive effort to understand where westand today in a rapidly transforming world and chart a course for the future. As we navigate this transformative era, one thing has become abundantlyclear: AI is no longer a technology of tomorrow—it is the driving force ofnow. Our research reveals that 82% of global business leaders are alreadyusing AI applications, with overwhelming majorities expecting to increasetheir investments in the coming years. Yet despite this widespread adoption,only 39% report having a clearly defined, comprehensive strategy in place. This gap between adoption and strategic implementation underscoresthe complex challenges organizations face. From building robust technical foundations and addressing security concerns to navigating evolvingregulatory landscapes and developing necessary talent, the path to AIsuccess requires careful consideration of multiple interconnected factors. What makes this moment particularly significant is the shifting nature of theconversation itself. We have moved beyond asking whether AI will transformour industries to asking how we can responsibly harness its potential todrive innovation, efficiency, and growth. The focus has rightfully expandedfrom purely technical considerations to encompass broader implications forsecurity, sustainability, governance, and workforce development. The AI Readiness Index aims to serve as both a mirror and a compass—reflecting the current state of AI readiness across industries and regionswhile providing direction for organizations at various stages of their AIjourneys. By combining extensive survey data from 665 business leaderswith expert analysis and case studies, we offer a nuanced view of thechallenges and opportunities that lie ahead. As you explore the findings in this report, I encourage you to considernot just where your organization stands today, but where it needs to betomorrow. The organizations that will thrive in this new era will be thosethat approach AI with both ambition and responsibility—embracing itstransformative potential while thoughtfully addressing the technical, ethical,and human dimensions of implementation. The future of AI is being written today, by leaders willing to ask difficultquestions, take bold risks and make strategic investments in thefoundations of tomorrow’s success. My hope is that this report will serve asa valuable resource as you write your organization’s chapter in that future. C H A P T E R1 The Global State of AI Readiness:A Data-Driven Analysis METHODCOMMUNICATIONS In boardrooms and strategy sessions across the globe, artificial intelligencehas moved from a distant aspiration to an immediate priority. Ourextensive survey of business leaders reveals a notable reality: AI adoptionis accelerating rapidly, with 82% of global businesses already deploying AIapplications in their day-to-day operations.. This broad adoption of artificialintelligence spans industries and regions, demonstrating that AI is nolonger the exclusive domain of tech giants but has become an essentialtechnology for enterprises of all types. Customer service stands at the forefront of this adoption wave, with 63%of organizations deploying AI to enhance customer interactions. Document