UNCTAD: Artificial Intelligence and the Future of Entrepreneurship in Developing Countries
A recent report by the United Nations Conference on Trade and Development (UNCTAD) highlights the pivotal and growing role of artificial intelligence in reshaping the entrepreneurial landscape in developing countries. The report indicates that these technologies are no longer merely a technological luxury, but have become essential tools for small and emerging businesses to enhance their competitiveness in global markets.
Context of global digital transformation
This report comes at a time when the world is experiencing a fourth industrial revolution, with countries racing to adopt generative artificial intelligence and automation technologies. Historically, developing countries have struggled to catch up technologically due to weak infrastructure and a lack of funding. However, AI today offers these countries a rare opportunity to "skip the hurdle," as entrepreneurs can access advanced tools at relatively low cost through cloud computing, thus reducing traditional barriers to market entry.
Opportunities and challenges facing entrepreneurs
A UNCTAD report revealed that startups in developing economies are using artificial intelligence (AI) across a range of areas, from improving marketing strategies and customer service to enhancing supply chains and operational processes. However, the report also highlighted a significant gap in managerial understanding and the necessary technical skills. While many entrepreneurs recognize the importance of AI, they lack the strategic vision to translate this technology into tangible and sustainable business value.
The importance of bridging the skills gap
According to the report, many entrepreneurs expressed a strong need for a deeper understanding of the business value of artificial intelligence (AI). This goes beyond simply using a technological tool; it requires identifying the types of problems AI can solve and how to integrate these solutions into the organization's long-term strategy. The report emphasized that the benefits of AI are not automatic; they require supportive ecosystems that include technical education, flexible regulatory frameworks, and the development of human skills capable of effectively utilizing these algorithms.
Expected economic impact
Integrating artificial intelligence into the economic fabric of developing countries has the potential to have a tremendous impact. Domestically, it could boost productivity and create new, high-skilled jobs. Internationally, empowering entrepreneurs with these tools could help bridge the economic gap between the Global North and South, enabling products and services from developing countries to compete globally. UNCTAD concludes that investment in human capital and digital infrastructure is key to transforming these theoretical opportunities into a thriving economic reality.
