Artificial intelligence (AI) has rapidly become a powerful force in reshaping economies and societies around the world.
It has the potential to drive innovation, increase productivity, and lead to new opportunities for economic development.
While developed economies have embraced AI, many developing economies have been slower to adopt it.
However, there are compelling reasons to consider the deployment of AI in developing economies, as it can offer substantial benefits and opportunities for growth.
The potential impact of AI on the global economy is substantial:
- According to a report by PwC, AI could contribute up to $15.7 trillion to the global economy by 2030, with the greatest gains expected to be in China and other emerging economies.
- A study by the Boston Consulting Group found that AI could potentially double annual economic growth rates in 12 developed and emerging economies by 2035.
These statistics highlight the significant potential that AI holds for developing economies, indicating that its deployment could lead to substantial economic gains and improved standards of living.
Benefits of deploying AI in developing economies:
- Economic growth: AI has the potential to drive economic growth by increasing productivity and efficiency across various sectors. For example, AI-powered automation can streamline processes in manufacturing, agriculture, and services, leading to increased competitiveness and higher output.
- Job creation: While fears persist that AI will replace human jobs, there is evidence to suggest that the net effect of AI on employment could be positive. An analysis by the International Data Corporation (IDC) estimated that AI-related job creation will reach 16% by 2022 in developing economies.
- Healthcare and education: AI technologies can revolutionize healthcare and education in developing economies. They can improve diagnostic accuracy, enhance patient care, and provide personalized learning experiences for students who may lack access to traditional resources.
Despite the potential benefits, deploying AI in developing economies comes with challenges and potential risks.
To ensure the responsible and effective deployment of AI, the following countermeasures should be considered:
- Ethical guidelines and regulations: Developing economies should establish and adhere to ethical guidelines and regulations to ensure that AI technologies are used responsibly and ethically. This is particularly crucial in areas such as healthcare, education, and data privacy.
- Skill development: To fully harness the potential of AI, developing economies should invest in skill development and training programs to equip their workforce with the necessary expertise to leverage AI technologies. This includes providing training for AI-related roles and promoting digital literacy.
- Infrastructure investment: Access to reliable and high-speed internet is essential for the effective deployment of AI in developing economies. Therefore, investment in digital infrastructure, such as broadband connectivity and data centres, is crucial to ensure the widespread adoption of AI technologies.
In conclusion, the deployment of AI in developing economies presents a significant opportunity for economic growth, job creation, and improvements in crucial sectors such as healthcare and education. However, it is important to approach the deployment of AI responsibly and strategically.
This includes the implementation of ethical guidelines, investment in skill development, and infrastructure improvements to ensure that the potential benefits of AI are maximized while potential risks are mitigated.
By doing so, developing economies can position themselves to harness the transformative power of AI and drive sustainable and inclusive growth.
*Prof. Ojo Emmanuel Ademola is the first Nigerian Professor of Cyber Security and Information Technology Management, and the first Professor of African descent to be awarded a Chartered Manager Status, and by extension, Chartered Fellow (CMgr FCMI) by the highly Reputable Royal Chartered Management Institute.
