Authors: Tuhu Nugraha and Irwan Hermawan*
Opportunities for Development
Artificial Intelligence (AI) holds the promise to reshape the future of developing countries, bringing opportunities that could transform economies, public services, and overall quality of life. With AI, these nations have a chance to diversify their economies, moving beyond traditional sectors by integrating AI into industries like manufacturing, agriculture, and services.
Take Rajesh, a farmer from rural India, who struggled for years with unpredictable weather and meager crop yields. Then, AI-powered tools that analyzed weather patterns and soil conditions entered his life. With this newfound knowledge, Rajesh made smarter decisions about when to plant and harvest, increasing his yield by 40%. This change brought financial stability to his family and allowed him to reinvest in his farm. Rajesh’s story is a testament to how AI can lift individuals out of hardship, transforming their livelihoods.
In Mexico, AI-driven automation is boosting manufacturing capabilities, opening up new avenues for economic growth, and reducing reliance on traditional sectors. In Togo, AI has revolutionized public service delivery by improving the targeting of cash transfers, ensuring that aid reaches those who need it most. Amina, a single mother, benefited directly—she used the AI-targeted aid to start her own small business, which now supports her children’s education. These stories are a glimpse into how AI is already making a tangible difference in people’s lives.
In healthcare and education, the impact is equally profound. Dr. Nthabiseng, a healthcare worker in a remote South African village, uses an AI-based diagnostic tool to help her diagnose patients. This tool has become her trusted assistant, enabling her to provide timely treatment recommendations even without specialized doctors nearby. By filling these crucial gaps, AI is offering hope and improving quality of life in communities that have historically been underserved.
Challenges Ahead
However, the potential of AI does not come without significant challenges. One of the biggest concerns is the risk of widening inequality. If proactive measures are not taken, AI could exacerbate existing divides between high-income and low-income nations. The International Labour Organization (ILO) warns of an impending “AI divide,” where unequal access to technology and infrastructure could leave developing countries even further behind. If this happens, it could lead to large-scale migration to developed countries, as people seek better opportunities and living conditions. This migration could create additional pressures on high-income nations, leading to social, economic, and political challenges that would affect the entire world.
Another major challenge is the threat AI poses to jobs, especially for low-skilled workers. As automation grows, jobs traditionally performed by humans—particularly in labor-intensive sectors—are at risk of being displaced. This is especially problematic for economies that have historically relied on cheap labor as their competitive advantage. Moreover, if Artificial General Intelligence (AGI) becomes a reality, it could further undermine traditional development models that depend heavily on human labor. This displacement could lead to social unrest, revolutions, and instability, as large segments of the population find themselves without employment or economic opportunities. Furthermore, as people lose their purchasing power, demand for goods and services will drop, leading to a stagnant economy where products remain unsold and economic growth is stunted.
Significant investments in infrastructure and human capital are needed to ensure that developing countries can truly benefit from AI. Expanding access to electricity and reliable internet is essential, as is providing education and training in both basic digital literacy and advanced AI skills. Building robust local tech ecosystems and fostering partnerships with international tech firms will also be key to ensuring these nations can thrive in an AI-driven world.
Policy Recommendations
To navigate the challenges and seize the opportunities AI presents, the following policy recommendations are critical:
- Strengthen International Cooperation: High-income countries should facilitate technology transfer and share AI expertise with developing nations to bridge the AI divide. This is crucial for high-income countries as well, as it creates a win-win scenario. By helping developing nations adopt AI, developed countries can open new markets for their AI technologies, foster global economic stability, and address shared challenges such as climate change and public health more effectively. International cooperation also ensures that AI adoption aligns with ethical standards, benefiting both sides in terms of economic and social progress.
- Enhance Digital Infrastructure: Developing robust digital infrastructure, including reliable internet and electricity, is foundational for AI adoption. This is crucial because without adequate infrastructure, access to AI technologies will remain limited, deepening the digital divide and preventing equitable participation in the benefits of AI. Reliable infrastructure ensures that all segments of the population can leverage AI tools, thus fostering inclusive growth and development.
- Focus on Skills Development: Educational initiatives must prioritize not only basic digital literacy but also advanced training in AI, ensuring the workforce is equipped for the future. This is important because without the necessary skills, workers may be left behind in an AI-driven economy, leading to increased inequality and missed opportunities for economic growth. By focusing on both foundational and advanced AI skills, developing countries can build a competitive workforce capable of driving innovation and benefiting from the AI revolution.
- Encourage Local Innovation and Provide Incentives for Startups: Fostering local tech ecosystems and supporting homegrown innovations will enable sustainable, locally-relevant economic growth. This is important because it helps build resilience and adaptability within the local economy, ensuring that AI solutions are tailored to the specific needs of the community. Incentives and supportive policies are also needed to encourage local startups to develop AI innovations that address specific challenges faced by developing countries. These startups can be instrumental in creating solutions that are both culturally relevant and economically viable. By combining incentives with fostering a culture of innovation, developing countries can create an environment where innovation thrives and responsible growth is achieved. Regulations and policies related to AI must also be pro-innovation while ensuring consumer protection, striking a balance that fosters a dynamic startup ecosystem that can innovate responsibly, benefiting both the economy and society.
- Promote Public-Private Partnerships: Governments should work closely with the private sector to create an environment that supports AI adoption. Public-private partnerships can help bridge funding gaps, provide necessary infrastructure, and ensure that AI solutions are tailored to meet local needs.
- Standardize Data Collection and Governance: Developing countries should establish standards for data collection, governance, and management to ensure the quality, privacy, and security of data used in AI systems. This is crucial for building trust in AI technologies and ensuring that data-driven AI solutions are both effective and ethical. Standardizing data practices also helps in creating a consistent framework that can facilitate collaboration between public and private sectors, as well as across borders. This is important also to avoid biases and potential discrimination, ensuring fairness and inclusivity in AI applications.
Conclusion
The future of AI in developing countries is filled with potential, yet it also presents substantial challenges. By focusing on strengthening infrastructure, international cooperation, skills development, local innovation, public-private partnerships, and supporting startups, these nations can harness AI to drive sustainable economic and social development. With the right policies in place, AI can be a powerful force for good, enabling developing countries to leapfrog into a more prosperous future while ensuring that the benefits are equitably shared.
Looking Forward
Emerging trends such as generative AI and explainable AI are likely to have a significant impact on developing countries. Generative AI can revolutionize content creation, education, and even manufacturing by providing cost-effective and scalable solutions. Explainable AI, on the other hand, can help build trust in AI systems by making them more transparent and understandable, which is particularly important for gaining public and governmental support in developing regions. These technologies, if leveraged effectively, can accelerate development while ensuring ethical considerations are addressed.
The long-term vision for developing countries involves a future where AI is fully leveraged for economic diversification, enhanced public services, and improved quality of life. Imagine a future where farmers in remote areas use AI to optimize crop yields, healthcare workers rely on AI diagnostics to provide timely treatments and public services are delivered efficiently through AI-driven platforms. With the right investments in infrastructure, skills, and innovation, AI can become a cornerstone of socio-economic progress, helping developing countries overcome traditional barriers and achieve sustainable growth.
*Irwan Hermawan. He is a Certified Public Relations (CPR) and multifaceted marketing communications professional who excels at the intersection of public service, industry innovation, and strategic marketing communications with over 15 years of experience in the field.
In his role as a Government Public Relations, he bridges the gap between the government and the public, fostering transparency and trust through effective communication strategies. As the Head of Research and Development for APPRI, he drives innovation and sets new standards in public relations, guiding the industry toward future-focused practices. Lastly, as the founder of Markathing Indonesia and co-founder of Govcom Consulting, he leads creative campaigns through transmedia storytelling that amplifies brand narratives and engages diverse audiences.
