AI Revolution Risks Leaving Poorest Nations Behind

Artificial intelligence (AI) is rapidly transforming the world. It has helped several companies in developed countries achieve record-breaking profits. Last month, Nvidia, a leading US AI company, reached a market value of USD 5 trillion.

Nvidia and the other six technology companies known as the Magnificent Seven now hold a combined market capitalisation of USD 22 trillion—surpassing the total GDP of the world’s 44 Least Developed Countries (LDCs), Small Island Developing States and Landlocked Developing Countries.

These companies continue to make massive investments in this transformational technology. AI is not only attracting future-focused investment but is already delivering significant benefits by accelerating global commerce and reshaping markets.

According to the World Economic Forum, AI is streamlining supply chains, optimising production and enabling data-driven trade decisions, giving companies a major competitive advantage in global markets.

So far, the main beneficiaries have been people in developed countries and a few technologically advanced developing nations such as India. Most developing countries, however, are lagging far behind this technological shift. The world’s 44 LDCs and many Small Island Developing States have been almost completely left out.

UNCTAD warns that LDCs risk being excluded from the economic benefits of the AI revolution. Many of these countries struggle with limited access to digital tools and still rely on traditional methods for trade documentation, market analysis and logistics—while others are racing ahead.

This widening digital divide threatens to marginalise these countries in international trade and highlights the urgent need to ensure they can participate fully in an AI-driven global economy.

AI has the potential to transform key sectors in developing countries. The World Bank notes that in agriculture, AI-based tools can improve crop yields, forecast market demand and enhance supply chain efficiency. This can strengthen food security and boost export earnings. In trade and logistics, AI can optimise operations, lower transaction costs and help local producers access new markets.

Beyond commercial use, AI can support disaster preparedness by helping governments and businesses allocate resources more efficiently, reducing losses during emergencies. AI could be a game changer in responding to major natural disasters such as the one caused by Hurricane Melissa in Jamaica recently.

Despite these opportunities, the poorest and most vulnerable countries face serious obstacles in accessing and using AI. The International Telecommunication Union notes that many lack reliable electricity, broadband connectivity and computing resources—basic requirements for AI deployment. Human resource shortages and limited fiscal capacity further hinder progress.

Given these challenges, what is the best path forward for the world’s poorest and most vulnerable nations?

First, strong policy and governance frameworks are urgently needed to guide AI-driven development. There are lessons to learn from others. Rwanda, a pioneer in using technology for national transformation, has developed a National Artificial Intelligence Policy. Similarly, Trinidad and Tobago recently established a Ministry of Public Administration and Artificial Intelligence.

Second, capacity building—especially for policymakers—is essential. This must go hand-in-hand with investment in universities and centres of excellence. Building partnerships with institutions across the Global South will be critical, particularly for low-cost, high-impact solutions.

Finally, financing remains key. With overseas development assistance on a downward trend, accessing grant and concessional financing from other sources is crucial. International financial institutions, especially regional development banks, have an important role to play. As these countries are shareholders, they should push to establish special-purpose financing windows dedicated to accelerating the adoption of relevant, low-cost and impactful AI technologies.

In a challenging global financing environment, achieving these goals will not be easy. This is where Tech Diplomacy becomes essential and should be a central part of a country’s foreign policy strategy. This will be explored further in another piece.

In summary, AI is already reshaping the world. For the poorest and most vulnerable countries, the situation is challenging but far from hopeless. Through strategic investment, inclusive and forward-looking policies and strong international cooperation—particularly through Tech Diplomacy—AI can become a powerful tool for sustainable growth and development.