ARTIFICIAL intelligence (AI) stands as a dynamic force reshaping economies and societies worldwide, yet its full potential remains largely untapped in developing economies.
The global economic impact of AI is staggering. According to PwC, AI could contribute a staggering $15.7 trillion to the global economy by 2030, with developing economies like China expected to reap the greatest gains. The Boston Consulting Group’s study goes further, suggesting that AI has the potential to double annual economic growth rates in 12 developed and emerging economies by 2035.
For developing economies, these statistics underscore the immense potential of AI, signalling the possibility of significant economic gains and elevated standards of living through its strategic deployment.
Benefits of deploying AI in developing economies:
- Economic growth: AI can propel economic growth by enhancing productivity and efficiency across sectors like manufacturing, agriculture, and services. Automation driven by AI can streamline processes, boosting competitiveness and output.
- Job creation: Contrary to fears of job displacement, AI could have a positive net effect on employment. The International Data Corporation estimates that AI-related job creation in developing economies may reach 16 percent by 2022.
- Healthcare and education: AI technologies have the potential to revolutionise healthcare and education by improving diagnostics, enhancing patient care, and offering personalised learning experiences, especially for those with limited access to traditional resources.
Despite the promises, deploying AI in developing economies comes with challenges and risks. Responsible and effective deployment requires strategic countermeasures:
Countermeasures for responsible AI deployment:
- Ethical guidelines and regulations: Developing economies must establish and adhere to ethical guidelines and regulations, particularly in critical areas like healthcare, education, and data privacy.
- Skill development: Investing in skill development and training programmes is crucial to equip the workforce with expertise in leveraging AI technologies. This includes training for AI-related roles and promoting digital literacy.
- Infrastructure investment: Access to reliable and high-speed internet is paramount for effective AI deployment. Therefore, investing in digital infrastructure, such as broadband connectivity and data centres, is essential for widespread adoption.
In conclusion, deploying AI in developing economies offers a significant opportunity for economic growth, job creation, and advancements in crucial sectors. However, a responsible and strategic approach is imperative. This involves implementing ethical guidelines, investing in skill development, and improving infrastructure to maximise AI benefits while mitigating potential risks. 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