The advent of new technology brings both the enticing promise of increased wealth and the apprehension of exclusion. Satya Nadella, the CEO of Microsoft, is haunted by the historical neglect of his native India during the Industrial Revolution, where Indian manufacturers faced significant disadvantages compared to their British counterparts. In the modern era, innovative solutions like virtual training programs are gaining more attention than traditional economic development initiatives. Concerns linger about the potential for generative artificial intelligence (AI) to further marginalize developing regions. Notably, the primary beneficiaries thus far have been early adopters in Europe and tech companies in San Francisco and the “magnificent seven” in America, including Microsoft, collectively witnessing a staggering $4.6 trillion increase in market value since the introduction of Chatgpt in November 2022.
Nevertheless, AI holds the promise of transforming life in developing countries by enhancing efficiency and narrowing economic disparities at a faster pace than previously seen. Rather than being passive recipients, people in these nations can harness AI to address their specific needs, potentially leveling the playing field in terms of income distribution.
The evolving landscape of AI in developing nations presents a prospect of becoming a versatile tool for both consumers and workers, akin to its role in Western societies, facilitating data collection and analysis. While certain job roles may be displaced, new opportunities are likely to emerge. The impact on existing businesses in developing nations may be less disruptive compared to Western economies due to a lower concentration of white-collar workers. According to reports, a smaller percentage of workers, ranging from five to twenty-four percent, are at high risk of job displacement in developing nations compared to around a third in wealthier countries.
Improved access to public services could potentially revolutionize developing economies, addressing longstanding challenges such as the shortage of skilled and healthy workforce. Educational disparities, particularly evident in countries like India and Africa, hinder the full realization of individuals’ potential in a globally competitive job market.
Global stakeholders are exploring ways in which AI can be harnessed to address these challenges. Initiatives in India, Kenya, and Brazil showcase the diverse applications of AI, from aiding farmers in accessing government loans to enhancing educational experiences for students and improving healthcare interventions.
The rapid diffusion of AI technologies in developing nations is expected to outpace previous technological waves, facilitated by the widespread adoption of mobile devices. Customization of AI solutions to suit local needs is gaining traction, steering away from the one-size-fits-all approach that has characterized tech advancements in the past.
While challenges persist, such as data management and workforce readiness, the potential benefits of AI adoption in emerging economies are substantial. Countries like China, India, and Gulf nations are strategically positioning themselves to leverage AI for economic growth and societal development, each tailoring their approach to suit their unique circumstances.
In conclusion, the transformative potential of AI presents a promising opportunity for developing nations to leapfrog traditional barriers and embrace technological advancements for sustainable growth and prosperity.
