AI in Emerging Countries

Initially, there was a sense that AI’s potential was still very much in the distant future – an almost abstract concept where research took place far from the real-world concerns of many emerging countries. There are signs this thinking is beginning to change. No longer are we waiting for huge announcements in large cities, like Lagos, Nairobi, Jakarta or Bogota. Instead, the growth of AI in emerging countries happens at a very low level: through practical applications, such as a mobile app for informal traders who can obtain microloans in minutes; a government chatbot answering frequently asked questions after business hours, etc. While individually none of these examples are revolutionary, collectively they represent an indication of the gradual reshaping of institutions and market structures.

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The rate and scope of change remain inconsistent across sectors. Some sectors, such as finance, are highly receptive to predictive analytics and automation, while others, like some in health care, remain entirely reliant on manual record-keeping and poorly functioning infrastructure. Financial technology illustrates both promise and tension because AI systems, through mobile transaction analysis and usage patterns, can extend credit to long-time-excluded populations. This capability presents an opportunity for many small businesses, yet it also raises concerns about algorithmic transparency and data protection, given the ongoing evolution of the regulatory framework.