Page 25 - Connecting the Future How Connectivity and AI Unlock New Potential

Connecting the Future: How Connectivity and AI Unlock New Potential

3 Realizing Economic Benefits of AI Enabled Connectivity:

Closing the Digital Divide

In an era where connectivity drives progress, LDCs find themselves at a crucial juncture. Despite
significant advancements across various sectors, these regions continue to face a mutual and
persistent challenge: the digital divide. The digital divide remains one of the most pressing chal-
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lenges of the 21st century, with over 3.7 billion people globally lacking reliable Internet access.
Remote, rural, and underserved communities remain disconnected from the transformative poten-
tial of modern telecommunications and emerging technologies like AI, limiting socio-economic
development and obstructing progress toward the SDGs.
At the core of this challenge lies the urgent need for increasing access to connectivity. As AI reforms
industries, its potential to drive economic growth, enhance productivity, and address societal
challenges hinges on access to resilient connectivity: high-speed Internet, digital infrastructure,
and widespread access to AI technologies. Without these foundational elements, the digital divide
threatens leaving developing nations further behind in the global economy. As such, access to AI
is not merely a technological milestone, it is a critical enabler of economic growth, job creation,
and societal well-being.

Chapter 3 highlights the growing urgency of addressing the digital divide, emphasizing
how unequal access to connectivity deepens social and economic disparities. It explores
digital infrastructure as a driver of inclusive growth and outlines initiatives from govern-
ments, industry, and international organizations. The chapter concludes with policy
recommendations to guide collaborative efforts in closing the gap.

3�1 The Digital Divide: Why it matters

3�1�1 Risks of Inaction

A) Increased Connectivity Gap

Lack of connectivity results in a lack of access to AI capabilities, widening the economic and social
disparities between connected and unconnected regions. When developing nations, especially
those with rural and underserved communities, suffer from limited access to high-speed Internet,
it hinders the level of education, healthcare, and economic opportunities.
This is particularly evident in education, where students in connected areas benefit from AI-pow-
ered learning platforms, while those in unconnected regions face severe disadvantages. It is thus
unsurprising that a UNESCO report highlights that 89% of learners do not have access to household
computers and 82% access to digital learning resources, putting them at a significant disadvantage
compared to their peers in more connected regions. 72
Therefore, improving connectivity and including more citizens in the digital economy is imperative
for socioeconomic transformation. For example, rural Latin America faces low mobile Internet
penetration rates despite its potential for agricultural innovation through AI tools, for example.
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Digital agriculture tools that rely on mobile connectivity can help farmers improve productivity
and adapt to changing weather patterns. However, as much as 80% of rural populations in some
areas in Latin America and the Caribbean lack meaningful connectivity due to coverage gaps and
affordability concerns. Without addressing these issues, rural communities will remain excluded
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from the benefits of digital transformation.
These disparities are not merely technical issues; they perpetuate cycles of poverty and underdevel-
opment as communities remain disconnected from opportunities enabled by digital transformation.

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