IMF Global AI Preparedness Report - And, 2026 US AI Law and Preemption Update

This Week’s Deep Dives!!

1. IMF Global AI Preparedness Report

2. 2026 US AI Law and Preemption Update

3. Public Sector AI Adoption Index 2026

4. IAPP Global AI Tracker & Predictions 2026

📖 GOVERNANCE

1) IMF Global AI Preparedness Report

TL;DR 

IMF Managing Director Kristalina Georgieva, speaking at the 2026 World Government Summit, underscored AI's potential to boost global productivity by 0.8% annually. While the UAE leads the world with a 64% adoption rate, Georgieva warned of a "tsunami" hitting labor markets, affecting 40% of global jobs. Success depends on three pillars: fiscal support for reskilling, innovation-friendly guardrails, and international coordination. The speech highlighted the urgency for middle-income and advanced economies to address the "digital divide" to ensure that the transformative power of AI leads to broad-based prosperity rather than deepened inequality across fragmented global markets.  

🎯 7 Quick Takeaways

1. AI could enhance global productivity by 0.8 percentage points annually, potentially exceeding pre-pandemic growth levels.  

2. 64% of the UAE’s working population uses AI, marking the highest adoption rate globally.  

3. 40% of global jobs face disruption, rising to 60% in advanced economies due to automation.  

4. AI adoption could increase Gulf region non-oil GDP by a significant 2.8% margin.  

5. Governments are urged to use fiscal policy to fund critical research and workforce reskilling programs.  

6. International coordination is required to harmonize different regulatory approaches between risk-based and principle-based systems.  

7. One in ten job postings in advanced economies already requires new, advanced AI literacy.

💡 How Could This Help Me?

For business leaders and policymakers, this report provides a strategic roadmap for navigating the "tsunami" of labor disruption. By understanding the IMF's three-pillar framework - fiscal support, guardrails, and cooperation, organizations can align their internal upskilling programs with emerging global standards. The high adoption rate in the UAE serves as a benchmark for what is possible when government strategy and corporate investment align. For investors, the projected 2.8% boost in non-oil GDP for GCC countries highlights a massive opportunity in regional tech hubs, suggesting that diversifying portfolios into AI-enabled emerging markets is a prudent long-term strategy.

📖 GOVERNANCE

2) 2026 US AI Law and Preemption Update

TL;DR

The US AI regulatory landscape in February 2026 is defined by a "constitutional clash" as federal preemption efforts target a growing patchwork of state laws. While California, Texas, and Illinois have enacted significant regulations effective January 1, the Trump administration’s December 2025 Executive Order seeks to "crush" state mandates that obstruct innovation. A DOJ Litigation Task Force is now identifying state laws for challenge, while federal funding (like BEAD) is being used as leverage. Companies face a complex environment: they must comply with existing state laws, such as California’s SB 53 - while monitoring federal moves to invalidate them through the courts and agency rulemaking.

🎯 7 Key Takeaways

1. Federal preemption efforts are targeting state AI laws in California, Texas, and Illinois.

2. The DOJ’s AI Litigation Task Force is identifying "onerous" state regulations for legal challenge.

3. California’s SB 53 requires developers of models exceeding $10^(26) FLOPS to publish risk frameworks.

4. Federal agencies can now condition grants on states aligning with a "minimally burdensome" AI framework.

5. Texas prohibits AI designed for "restricted purposes," including discrimination and deepfake CSAM generation.

6. Federal preemption does NOT apply to state authority over child safety or government procurement.

7. Organizations must maintain state compliance until courts or agencies officially clarify the Executive Order’s reach.

💡 How Could This Help Me?

For legal counsel and compliance officers, this update is a "warning bell." The lack of federal certainty means your organization must currently comply with the most stringent state standard (likely California or Colorado) to mitigate risk, even while federal preemption is debated. However, the Executive Order offers "safe harbors" for startups, suggesting a future with reduced compliance burdens for smaller entities. If you are a state-funded organization, monitor the BEAD funding conditions closely; "onerous" local AI policies could jeopardize your infrastructure budget. This is the time to build a "flexible compliance" model that can adapt to rapid jurisdictional changes.

📖 GOVERNANCE

3) Public Sector AI Adoption Index 2026

TL;DR

The 2026 Public Sector AI Adoption Index reveals that while 90% of federal agencies plan to use AI, actual implementation is lagging, with only 12% of civilian agencies completing adoption plans. Surveying 3,335 public servants across 10 countries, the report identifies a "gap between promise and practice." Major hurdles include declining security confidence, workforce shortages, and the "Trust Paradox" - where employees trust AI but lack the literacy to understand it. The index evaluates progress across five dimensions, highlighting that the primary challenge for 2026 is moving beyond experimental pilots to "Embedding" AI into the foundational daily workflows of government service delivery.

🎯 7 Key Takeaways

1. 90% of federal respondents are planning to or already using AI in their operations.  

2. Only 12% of civilian and 2% of defense agencies have completed AI adoption plans.  

3. 39% of public servants report a decline in digital security confidence over the last year.  

4. "Pilot Purgatory" remains the norm, with few agencies moving tools to full-scale production.  

5. The Index measures government effectiveness across five dimensions, including education and workforce empowerment.  

6. Legacy technology and reliability concerns are the primary "technical" barriers to public sector scaling.  

7. 75% of data leaders believe their workforce requires urgent, large-scale upskilling in AI literacy.    

💡 How Could This Help Me?

For public sector consultants and tech vendors, this index is a "market map." It highlights that the biggest sales opportunity isn't "new features," but "security assurance" and "integration support." If you can help an agency bridge the gap from "pilot" to "embedded" use, you possess a massive competitive advantage. For government leaders, the index provides a benchmark: if your agency isn't tracking "Embedding" or "Education" metrics, your strategy is likely to fail. Use the five-dimension framework to identify where your team is stalling, it’s likely in the "Empowerment" phase due to security fears.

📖 NEWS

4) IAPP Global AI Tracker & Predictions 2026

TL;DR

The February 2026 IAPP Global AI Tracker reflects a world transitioning from legislative drafting to framework implementation. A key trend is the "deregulatory shift" to avoid stifling innovation, with the EU considering delays to "high-risk" rules and the US gutting safety frameworks. Conversely, South Korea and Japan have finalized promotional acts to build domestic AI hubs. In the absence of binding federal laws in many regions, voluntary standards, like Australia’s 10 guardrails and copyright rulings are filling the gaps. 2026 is predicted to be the year where "soft governance" and industry-specific regulations become the primary mechanisms for managing AI risk globally.

🎯 7 Key Takeaways

1. 2026 marks the transition from drafting to implementing global AI regulatory frameworks.  

2. The EU is debating a one-year delay for high-risk system rules via the "Digital Omnibus".  

3. South Korea’s AI Framework Act prioritizes safety and infrastructure, including a new AI data center.  

4. Japan’s AI Promotion Act serves as a "light touch" regulation focusing on human rights.  

5. US courts are increasingly favoring "fair use" for training models on copyrighted datasets.  

6. Australia has released 10 voluntary AI safety guardrails, emphasizing testing and transparency.  

7. Chile leads Latin America in AI adoption due to massive subsea cable and data center expansion.

💡 How Could This Help Me?

Multinational companies can use this tracker to plan their global product rollouts. If you are developing "high-risk" AI, the potential EU delay provides a window for market entry before strict compliance begins. If you are in the Asia-Pacific region, the "promotional" focus of Japan and South Korea makes them ideal hubs for R&D. Furthermore, the "fair use" rulings in the US offer a clearer legal path for data scraping and model training strategies. Organizations should prioritize "soft governance" tools, like Australia’s Impact Navigator - to demonstrate "good faith" compliance in jurisdictions without binding laws.