Development of AI Competence in Developing Countries: Policy, Regulation & Prospective Career

In the rapidly evolving digital era, artificial intelligence (AI) has indeed become a crucial aspect, particularly for developing countries.

Authors: Tuhu Nugraha and Rosaria Mita Amalia*
In the rapidly evolving digital era, artificial intelligence (AI) has indeed become a crucial aspect, particularly for developing countries like India, Brazil, Indonesia, and South Africa. These nations serve as significant benchmarks in the quest to develop AI competencies. For example, India’s achievements, exemplified by programs like Digital India and the National Program on AI, underscore the nation’s commitment to building robust digital infrastructure and cultivating a high-quality talent pool in the AI field.

Furthermore, Brazil has also made significant strides in applying AI to improve public services and address social issues. In parallel, Indonesia, with its large population and rapid digitalization, is actively striving to adopt AI in government and business. An exemplary initiative in Indonesia is the AI innovation acceleration program, led by the Collaboration on Artificial Intelligence Research and Innovation known as Korika

Moreover, South Africa, with its focus on AI research at various universities, illustrates how education and research can be keys to AI development. The success of these countries underscores that a combination of wise government policies, investment in education and infrastructure, and collaboration with industry can result in significant advancements in AI.

However, developing countries also face common challenges in this AI-driven landscape. These challenges include large young populations, often with limited access to quality education and skill development opportunities, resulting in a competency gap. Additionally, economic disparities within these nations can further exacerbate the uneven distribution of AI-related benefits. Tackling these challenges is essential to harness the full potential of AI and ensure its equitable benefits reach all segments of society in developing countries.

Regulation of Funding for Education and Research

Developing countries need to allocate significant government funds to support AI education and research and establish research centers at universities. In Indonesia, investments in AI education have led to the creation of AI research centers at leading universities such as Padjadjaran University through AI Research and Big data Analytics Center (Pusat Riset AI dan Big Data (AIDA)), Bandung Institute of Technology (ITB), and University of Brawijaya, actively collaborating with industries like NVIDIA, Tokopedia, and Bukalapak. These collaborations have created a dynamic AI ecosystem that integrates academic research with industrial needs, accelerating AI adoption across various sectors.

In South Africa, both the University of Cape Town (UCT) and the University of the Witwatersrand have launched ambitious AI programs. UCT offers a comprehensive Master’s program in AI, while the University of the Witwatersrand, through the Wits Institute of Data Science (WIDS), focuses on research and training in data science and machine intelligence. Both institutions demonstrate strong commitments to AI development.

Furthermore, cross-country research collaboration in the Global South (South-South cooperation) and with BRICS countries (Brazil, Russia, India, China, and South Africa) can strengthen the AI capacities of developing nations in addressing specific issues such as sustainable agriculture, public health, and natural resource management, contributing to a more inclusive and sustainable global solution.

Regulation of Education-Industry Collaboration

Collaboration between educational institutions and industries must be regulated to ensure curricula are relevant to the job market. This includes implementing internship programs and practical training aligned with the latest developments in the AI industry. This enables graduates to directly engage and contribute to the workforce.

In India, collaboration between educational institutions and industries has been strengthened through initiatives like Digital India and Skill India, which integrate AI education and technology into curricula and provide training tailored to industry needs. These programs encompass practical training and internships, ensuring graduates possess the skills demanded by the AI job market.

In Indonesia, the “Merdeka Belajar Kampus Merdeka” (MBKM) flagship program launched by Ministry of Education and Culture of Indonesia in 2020, is a significant step in integrating industry experience into higher education. MBKM allows students to participate in off-campus activities, including internships in industries, research projects, and community service activities, all of which align with the needs of the AI industry. Internship and Independent Study program (Magang dan Studi Independen Bersertifikat/MSIB), one of prominent MBKM program, opens up opportunities for students from overall Indonesia to gain practical experience and understand the dynamics of the workforce, particularly in the AI and technology sectors not only in Indonesia but also overseas.

Fiscal Incentives for AI Investment

Providing fiscal incentives to companies investing in AI is crucial as it can stimulate innovation and AI infrastructure development. These incentives, such as tax deductions, make AI investments more attractive to the private sector, encouraging research and development and broader adoption of AI technology.

For example, in India, the government has provided fiscal incentives for technology companies in the annual budget, including those investing in AI R&D. In South Africa, through policies like the “Youth Employment Service” (YES), the government offers tax incentives to companies providing employment and training opportunities, including in the AI sector. Such incentives not only boost investments in the AI sector but also aid in the development of a more sustainable and inclusive AI ecosystem.

Certification and Licensing Programs

The development of certification systems for AI courses and training plays a crucial role in ensuring quality standards and recognizing acquired expertise. For instance, in South Africa, training programs in AI offered by the Youth Employment Service (YES) and Microsoft, as well as in Indonesia, the “Cloud Skills Boost Program” by Google Cloud, both offer intensive training with industry-recognized certifications. These programs not only enhance AI skills but also help bridge the digital skills gap and unemployment while strengthening digital literacy among the younger generation.

Data Protection Policies

With the advancement of AI, data protection policies have become increasingly important. Strict and clear regulations regarding the use and protection of personal data in AI development need to be implemented to ensure ethics and privacy are upheld. In Brazil, the Marco Civil Law protects privacy and personal data, including consent for data processing and the right to full information about its treatment. However, additional legislation to strengthen these laws is recognized as necessary. Meanwhile, in Indonesia, the Personal Data Protection Law will be implemented in 2024, after being enacted in 2022, marking a significant step in regulating personal data in line with technological and AI growth. This demonstrates global awareness of the importance of data protection in the digital age.

Empowering the Startup Ecosystem

Developing countries should promote the growth of AI-focused startups. This can be achieved through streamlined licensing processes, access to capital, and incubation support. AI startups play a key role in developing innovative solutions relevant to the local context. The importance of fostering the development of AI startups in developing countries lies in their ability to provide solutions tailored to local challenges, drive economic growth and job creation, and build a competitive technology ecosystem. AI startups bring innovation and advanced technology to the local market, enhancing access to cutting-edge technology for the population and contributing to addressing social and environmental issues. For example, in Brazil, AI development strategy focuses on research and innovation to address national challenges. This strategy includes six main objectives, including AI ethics, innovation, and cross-sector collaboration, as well as strengthening Brazil’s international technology profile. Brazil has also adopted the OECD principles for responsible AI and established a national AI innovation network, involving collaboration between government agencies and research centers to support and advance AI startups.

Education Campaigns

Public education campaigns about AI are crucial for dispelling fears and anxieties in the AI era. In these campaigns, we need to explain the importance of AI in everyday life, highlight the opportunities available in various AI-related job fields, and outline the skills required to engage in this technology. These messages should be consistently communicated through various communication channels to ensure they are easily understood by all segments of society. By doing so, we can enhance public understanding of AI and motivate more individuals to learn and contribute to the AI era with greater confidence and understanding.

Improving digital literacy in higher education, particularly regarding AI, is crucial for preparing students for the modern digital landscape. To achieve this, universities should integrate digital literacy into their curriculums by embedding AI-focused components into various disciplines. This approach not only enhances students’ understanding of digital technologies and online resources but also emphasizes the importance of AI in today’s world. Providing access to advanced technology and online learning platforms is essential, along with teaching digital research skills and social media literacy.

Additionally, the inclusion of guest speakers and industry experts can offer practical insights into the evolving role of AI. A significant aspect of this digital literacy initiative is fostering the ability to effectively collaborate with AI systems. By equipping students with these skills, universities create an environment that not only promotes digital literacy but also ensures students are adept at working alongside AI in both academic and professional settings. This holistic approach to digital literacy is key to preparing students for the challenges and opportunities presented by the rapidly advancing digital age.

By implementing these policies, developing countries will not only enhance their competence in AI but also be prepared to face challenges and seize opportunities in the future. This approach ensures that AI development is not limited to advanced nations but also brings significant benefits to developing countries in addressing their unique needs.

*Rosaria Mita Amalia, Head of the Career Development Center at Padjadjaran University, Vice President of the Indonesia Career Center Network (ICCN)

Tuhu Nugraha
Tuhu Nugraha
Digital Business & Metaverse Expert Principal of Indonesia Applied Economy & Regulatory Network (IADERN)