AI Adaptation – Challenges for Developing Countries

Artificial intelligence (AI) is rapidly transforming societies worldwide. While developed nations are at the forefront of this technological revolution, developing countries also stand to gain immense benefits from AI advancements. From enhancing agricultural yields to empowering manufacturing processes, AI has the potential to address some of the most pressing challenges faced by developing economies. However, adapting and integrating AI effectively requires overcoming several key hurdles.

Bridging the gap between today’s digital landscape and ensuring responsible implementation are crucial steps for these nations to harness the true potential of AI. For a developing country like Bangladesh, adapting to AI can significantly boost their growth, given that they successfully overcome the changes that lie in the path towards AI adaptation.

Developing Countries Are Least Ready to Harness the Power of AI-Powered Technology, says UNCTAD

According to UNCTAD’s Technology and Innovation Report 2023, top dogs in AI such as China, the United Kingdom, and the United States possess nearly half of all AI-related publications and patents. Leaving little room for developing countries to dominate. On top of that, developing countries are the least equipped to harness the power of AI-powered technology, lacking the data, infrastructure, and connectivity.

Despite the huge differences, developing countries do have the potential to utilize AI as a tool as a means of accelerating growth. 

Challenges on the Path to AI Adaptation

AI is shaping the digital landscape on a global scale, empowering countries to outperform their own performance records. Some developing countries are not even beginning to take AI into consideration. However, there are developing nations out there like Vietnam, Philippines, Bangladesh, Nepal, and Cambodia among many who realize the potential of AI and are ready to adapt. In doing so, many challenges lie ahead that need to be addressed in order to effectively leverage AI’s capabilities to funnel growth in all sectors of the economy.

Data Scarcity And Bias

The development of AI and Machine Learning programs relies solely on the availability of large, high-quality data sets, which are scarce in developing countries. Training AI models based on data sets from developed nations may lead to biased models that do not align with the specific needs of developing economies.

The AI Skill Gap

A shortage of AI experts in developing nations is one of the greatest barriers preventing them from unleashing the true potential of artificial intelligence. The lack of professionals who excel in the field of AI hinders the development of AI models and the adaptation to existing technologies.

Regulatory Concerns

The absence of clear regulations surrounding AI creates uncertainty for businesses and organizations, discouraging investments in AI development. The governments of such developing economies need to delve into AI and encourage nationwide AI adaptability with strong legal frameworks in place.

Infrastructure Deficit

The development of complex AI models requires high levels of processing power that are often unavailable in developing regions.

AI’s Impact on Employment Rates

AI is replacing clerical tasks, such as data entry and customer service through the power of automation. As more countries start utilizing the effectiveness of AI, more job holders will be at stake. Nearly 60% of all jobs will be impacted by AI. Half of these jobs will benefit from AI in terms of productivity and accuracy. While the rest of the half could lower labor demand, leading to lower wages and reduced hiring.

[Source: International Monetary Fund]

Potential for AI in Developing Countries

For developing countries to compete in today’s ever-expanding digital economy, they need to actively invest in AI advancements and adapt to AI-powered technologies that can act in favor of the nation. Though we have seen several hurdles in navigating the path toward successful AI adaptation, developing countries do have the potential to convert the idea of AI into an effective tool, and here’s how they may achieve it:

• Invest in digital infrastructure: The first step towards achieving success with AI is to increase the processing capabilities available at hand. Enhancing internet access and establishing high-performance computing facilities are crucial first steps.
• Focus on high-quality data collection: Take initiatives to collect quality data that is specific to the developing nation’s needs. For the nation to grow, it needs to understand its local data and utilize it.
• Bridge the AI skills gap: Encourage developers become adept to AI skills and practices. Education programs and training initiatives can foster a skilled AI workforce within developing nations.
• Develop responsible AI regulations: Collaboration between government, tech giants, and civil society can foster the creation of robust regulatory frameworks that works in favor of the developing country.

How AI Can Work to Improve the Economy of Developing Countries

Artificial intelligence (AI) has the potential to be a game-changer for developing economies, offering a powerful set of tools to diversify their source of growth and drive sustainable economic growth. AI can assist humans to achieve almost anything and large corporations are already exploiting the benefits.

Developing countries need to adapt fast to AI in order to emerge as leaders of tomorrow. AI can aid in improving the efficiency, effectiveness, and productivity of all industries of an economy, including healthcare, manufacturing, agriculture, production, food processing, sports, digital marketing, and development. More ways in which AI can work to improve the economy of developing countries:

• Robotic automation in manufacturing machinery, chemicals, textiles and fabrics, metal products, electronics, and automobiles
• Image recognition working in food processing to spot between good & bad samples
• Visual search and image recognition to monitor traffic and improve it in heavily populated cities
• AI technology to detect early stages of cancer, improve diagnosis, treatment and monitoring patients’ health
• AI-powered innovations to assist creative artists in speeding up their productivity
• AI to predict weather conditions as well as boosting agri-tech efforts & farmers’ efficiency
• Artificial intelligence to aid in healthcare, spotting mutations early on, identifying diseases, and visualizing blind spots
• AI-powered customer service systems to automate customer care on websites & e-commerce sites

The Future of AI in Developing Countries

Unlocking the full potential of AI requires overcoming challenges like limited infrastructure, data scarcity, and the skills gap. For a future where developing countries thrive, it is crucial to consider the possibilities of AI adaptation into existing economic sectors.

By establishing strong initiatives through investments in digital infrastructure, data collection endeavors, and AI education programs, developing countries can create an environment where AI can become a powerful engine for economic growth. Softograph foresees the growth of AI in developing countries like Bangladesh, Vietnam, India, and neighboring countries that share the same agendas to develop further as a nation. They predict AI will be an integral part of the economy in the coming years, speeding up and revolutionizing countless industries. On top of efficiency, the technological advancements that will follow with the rise of AI-integrated software, robots, and systems will work together for a brighter future for developing countries worldwide.