Artificial intelligence in developing countries: Pathways to inclusive and sustainable growth

Abstract

While artificial intelligence (AI) holds transformative potential for developing economies, significant structural barriers impede its successful adoption across Africa, Latin America, and Asia. As of 2023, only 30 per cent of developing nations have established AI regulations, a regulatory gap compounded by deficient infrastructure and severe talent brain drain. Consequently, the regions that could benefit most from AI remain the least equipped to deploy it safely. This paper examines both the systemic challenges and successful frameworks of AI implementation in the Global South. Prominent case studies demonstrate that combining local adaptation with strategic policy and public–private partnerships yields tangible advancements in critical sectors. Examples include Egypt’s National AI Strategy 2030, Honduras’s blockchain and AI-driven coffee traceability via Harvverse, and agricultural optimisation through projects such as Agrobots and Biorom. Furthermore, AquaIntelligence facilitates community water management, supported by international tech transfers and digital capacity building from organisations such as the United Nations Climate Technology Centre and Network and the Deutsche Gesellschaft für Internationale Zusammenarbeit. Conversely, the study highlights the risks of unregulated AI deployment, which threatens to exacerbate socio-economic inequalities, displace labour, and institutionalise algorithmic bias, thereby favouring resourceful elites while marginalising vulnerable populations. To mitigate these risks, this paper argues that governments must approach AI adoption primarily as a governance challenge rather than a technological one. Synthesising these insights, the core framework proposes three urgent pillars for sustainable digital transformation: expanding equitable access to high-quality data, scaling robust digital education, and designing inclusive policies that distribute technological dividends across all societal strata. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.