Artificial Intelligence (AI) is reshaping industries worldwide, yet its adoption remains significantly slower in the Global South compared to the Global North. While developed nations lead in AI research, deployment, and regulation, many developing countries struggle to keep pace. This gap—often called the “AI divide”—could widen existing inequalities if not addressed. However, there are opportunities for the Global South to leapfrog traditional barriers and accelerate AI adoption strategically.
Key Challenges Hindering AI Adoption in the Global South
Limited Digital Infrastructure
AI requires robust digital infrastructure, including reliable electricity, high-speed internet, and data storage capabilities. However, many regions in the Global South lack widespread broadband access and face frequent power outages. For example, Europe and North America enjoy near-universal internet access. According to the International Telecommunication Union (ITU), Sub-Saharan Africa has an internet penetration rate of only around 37% as of 2023. Without these basic enablers, businesses and governments struggle to integrate AI-driven solutions.
Shortage of AI Talent
AI innovation depends on skilled professionals, but the Global South suffers from a severe talent shortage in data science, machine learning, and AI engineering. Many AI experts from these regions migrate to developed nations for better opportunities, exacerbating the brain drain. Countries like India and Nigeria have promising AI ecosystems but often lose their best talent to Silicon Valley, Europe, or China. The lack of AI training programs in universities and technical schools further compounds this challenge.
Low AI Investment and Funding
AI requires significant investment in research, development, and deployment. Private sector funding and government grants fuel AI startups and enterprise adoption in the Global North. In contrast, venture capital and public funding for AI in the Global South remain scarce. This limited access to funding restricts their ability to scale and compete internationally.
Regulatory Uncertainty and Governance Gaps
While developed countries have established AI policies and regulatory frameworks, many developing nations lack clear AI governance structures. Without proper guidelines on data protection, AI ethics, and compliance, businesses may hesitate to invest in AI initiatives. Countries such as Rwanda and Brazil are making strides in AI regulation, but many others remain behind, creating uncertainty for potential adopters.
Industry Readiness and Organizational Culture
Many industries in the Global South remain hesitant about AI adoption due to concerns over cost, job displacement, and lack of understanding of AI’s potential. Unlike companies in the Global North, which have dedicated AI teams, many businesses in the Global South lack the internal capacity to implement AI solutions effectively. Traditional sectors, such as agriculture and manufacturing, often rely on low-cost labor, making automation less of a priority.
How the Global South Can Leapfrog AI Barriers
Despite these challenges, the Global South has opportunities to leapfrog traditional AI adoption barriers by leveraging alternative strategies tailored to its unique context.
Invest in Digital Infrastructure and Cloud AI
Governments and private sector players should prioritize expanding broadband internet, investing in data centers, and ensuring stable electricity supplies. In parallel, cloud-based AI solutions can help overcome infrastructure gaps by allowing businesses to access AI tools without heavy upfront investments in computing power.
Build AI Talent Locally
Developing local AI talent is critical for sustainable AI adoption. One way to achieve this is by expanding access to free online AI learning platforms that provide courses on data science, machine learning, and AI applications. Platforms such as Coursera, edX, and Google’s AI for Everyone can be leveraged to train a wide range of learners, from students to professionals. Governments and educational institutions in the Global South should actively promote these platforms and integrate them into national AI literacy programs, ensuring that even those in remote areas have access to AI knowledge. This approach can democratize AI education and empower a new generation of AI professionals.
Encourage AI Investment Through Public-Private Partnerships
To attract AI investment, governments should create AI-focused innovation hubs and offer tax incentives for AI startups. Encouraging foreign direct investment in AI research centers can also boost local capabilities. Countries like Singapore have successfully used public-private partnerships to drive AI growth, and similar models could be adapted for Global South economies.
Provide Incentives for AI Adoption in Industry
Governments should introduce targeted incentives to encourage industries to adopt AI solutions that address local needs. This can include tax breaks for AI-driven businesses, grants for AI research and development, and subsidized AI training programs for companies. Providing funding for pilot AI projects in key industries—such as agriculture, healthcare, and finance—can demonstrate the value of AI and accelerate its integration into mainstream operations.
Transform the Public Sector with AI and Blockchain for Efficiency and Transparency
Governments should lead by example by integrating AI into public sector operations to improve efficiency, reduce bureaucracy, and enhance transparency. AI can streamline administrative tasks, improve public service delivery, and strengthen anti-corruption efforts through automated data analysis and fraud detection. Blockchain can further enhance these efforts by providing immutable records of government transactions, increasing trust, and reducing fraud in areas such as public procurement, land registry, and financial management. Moreover, digital transformation in the public sector can increase business certainty and investor confidence, as streamlined processes and transparent regulations reduce delays and inefficiencies. The integration of AI with blockchain in regulatory frameworks can enable real-time compliance tracking, automated audits, and secure digital identity verification, ensuring greater ease of doing business and attracting foreign investments.
Develop AI Policies and Ethical Guidelines
Establishing AI regulations will provide businesses with the confidence to invest in AI. Clear governance frameworks ensure responsible AI deployment while addressing risks such as bias, privacy concerns, and economic displacement. Governments should collaborate with international organizations to develop AI governance structures that align with global best practices while adapting them to local needs.
Strengthen AI Collaboration Through the Global South AI Forum
Governments in the Global South should leverage existing AI collaboration platforms under UNESCO, such as the International Research Centre on Artificial Intelligence (IRCAI), and advocate for a dedicated Global South AI Forum within these frameworks. The upcoming AI Global South Forum 2025 in Thailand presents a key opportunity for nations to solidify their commitment to AI cooperation, address regional AI challenges, and establish concrete strategies for inclusive AI growth. By aligning with such global events, policymakers can ensure that AI development remains both sustainable and beneficial for all sectors of society.
Establish AI Innovation Centers for Localized Solutions
AI development in the Global South must align with local economic structures and workforce demographics. Governments should fund AI innovation centers that focus on creating AI applications suitable for local industries, particularly in areas such as agriculture, fintech, and small-scale manufacturing. These centers should also explore strategies to address job displacement concerns, given that many Global South countries have young and growing labor forces. AI should be used not just for automation but also for augmenting human labor, improving productivity, and creating new economic opportunities.
Conclusion
While the Global South faces significant challenges in AI adoption, it also has the potential to bypass traditional developmental trajectories through strategic investments, talent development, and innovative AI applications. Transforming the public sector with AI can improve efficiency, enhance transparency, and build investor confidence, ensuring a more predictable and business-friendly environment. By fostering public-private collaboration, expanding digital infrastructure, providing industry incentives, and prioritizing AI for development, these nations can harness AI’s transformative power to drive economic growth and social progress.
