The AI Divide: How Developing Nations Can Turn Productivity Gains into Economic Powerhouses
26min read The United Nations’ 2025 report on artificial intelligence (AI) has reignited debates about the technology’s potential to reshape global economic dynamics. While AI’s $4.8 trillion projected market value by 2033 shines a spotlight on its transformative power, the findings reveal a stark reality: 118 developing nations risk being left behind in the AI revolution unless systemic inequities are addressed. For investors, this presents a high-risk, high-reward landscape where strategic bets on infrastructure, education, and governance could unlock unprecedented returns.
Ask Aime: "Will the AI revolution leave developing nations behind?"
The AI Opportunity: Trillions at Stake
The UN report underscores that AI is not just a tool for automation but a catalyst for inclusive growth in sectors like agriculture, healthcare, and small businesses. For instance, AI-driven tools in farming could boost crop yields by up to 30%, while telemedicine platforms powered by AI could bring healthcare to remote regions. This potential is reflected in global optimism: 70% of respondents in low- and medium-human development countries believe AI will boost productivity, with two-thirds planning to adopt AI tools within a year.
However, the path to realization is fraught with challenges. Developing nations face barriers like energy shortages, limited internet access, and proprietary data monopolies held by tech giants. To capitalize on AI’s potential, investors must focus on enabling infrastructure and equitable access.
Ask Aime: "Will AI reshape global economic dynamics, and how can investors capitalize on it?"
The Infrastructure Challenge
The UN report identifies high-speed internet, computing power, and data storage as foundational requirements. Without these, nations cannot develop or utilize AI systems effectively. For example, sub-Saharan Africa has an electricity access gap of over 600 million people, while only 40% of the region has reliable internet.
Investors should look to sectors like renewable energy microgrids and low-cost satellite internet (e.g., Starlink’s expansion in rural areas). Meanwhile, public-private partnerships—such as India’s $1.25 billion AI initiative or Saudi Arabia’s $100 billion "Project Transcendence"—highlight strategic opportunities in national AI infrastructure funds.
Data: The New Currency for Development
AI systems require diverse, high-quality datasets to function effectively. Yet, proprietary data ownership by tech giants like Google and Alibaba limits local innovation. The UN urges governments to establish open data initiatives and public data commons to ensure AI reflects regional needs.
Consider healthcare: AI models trained on U.S. or European data may fail to address tropical diseases in Southeast Asia. Investors could back data cooperatives or local AI training centers that create context-specific datasets. For example, Kenya’s iCow app, which uses AI to advise farmers on livestock management, demonstrates the value of localized solutions.
Education and Skills: The Human Factor
The report emphasizes that AI’s success hinges on reskilling programs and digital literacy. Without these, automation could displace 40% of jobs in developing nations. The solution lies in vocational training and integrating AI into education systems.
Investors should target EdTech platforms focused on coding, robotics, and AI ethics. For instance, Brazil’s Cubos Tech trains underserved youth in tech skills, while India’s NIIT has expanded AI-centric curricula.
Global Governance: A Crucial Missing Piece
The UN calls for international cooperation to ensure AI benefits all nations. Proposals include a shared global computing facility and ESG-style AI governance frameworks. Without this, developing nations may face algorithmic bias or exclusion from decision-making.
Investors can advocate for impact investing funds that prioritize inclusive AI governance or support UN initiatives like the Global AI Facility, which aims to democratize access to computing power.
Conclusion: Betting on Inclusive AI Growth
The UN’s findings paint a clear picture: AI is a double-edged sword. While it could lift millions out of poverty, it risks deepening inequality if developing nations lack infrastructure, data, and skills. The stakes are high—the $4.8 trillion market is within reach, but only for those who act now.
Investors should prioritize three areas:
1. Infrastructure: Back companies like Gridscape (renewable energy) or SpaceX Starlink to close the digital divide.
2. Education: Support EdTech firms (e.g., Andela in Africa) training the next generation of AI workers.
3. Governance: Invest in public-private partnerships (e.g., India’s AI4Bharat initiative) to ensure equitable AI frameworks.
The data is compelling: falling AI inference costs (down 280-fold since 2022) and rising adoption in low-income countries signal a tipping point. Those who align their investments with the UN’s vision of “people-centered AI” could capture a share of the trillions at stake—and help build a more equitable world.
The race to AI-led growth is on. Will you back the disruptors or the excluded?
