Page 26 - Connecting the Future How Connectivity and AI Unlock New Potential

Connecting the Future: How Connectivity and AI Unlock New Potential

B) Exacerbated Digital Divide

The lack of connectivity exacerbates existing inequalities both within countries (urban vs. rural)
and between nations (Global North vs. Global South). High-income countries are leveraging AI for
productivity gains across sectors such as healthcare, manufacturing, and agriculture. Meanwhile,
developing economies face bottlenecks due to limited infrastructure, unaffordable devices, and
insufficient digital skills.
This emerging “AI divide” risks turning temporary disparities into long-term barriers to prosperity.
The lack of AI resources and data processing capabilities in developing nations creates challenges,
reinforcing dependency and preventing developing countries from fully participating in the value
chains of the digital economy. For example, high-income countries are increasingly adopting
AI-driven technologies that optimize supply chains or improve healthcare outcomes. In contrast,
less-developed regions struggle with basic connectivity issues that prevent even foundational digi-
tal services from reaching underserved populations. Despite these challenges, policymakers from
around the world continue to engage in discussions about these issues with the hope of finding
solutions that will benefit all stakeholders, and further reduce the AI divide. Deep engagement
between governments to meaningfully address these disparities will provide the best outcomes
for all.

C) Closing the Gap: Digital Infrastructure as a Catalyst for Growth

Targeted investments in technology-intensive sectors can reduce risk and raise incomes in low-re-
source settings. In sub-Saharan Africa, addressing connectivity barriers could unlock $170 billion
in GDP by 2030. By enabling access to education, e-commerce, and healthcare services, these
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efforts can transform underserved communities into active participants in the global economy.
Similarly, in Latin America, agritech platforms leveraging IoT devices have already demonstrated
their potential to reduce costs and increase yields for smallholder farmers. Scaling such solutions
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requires not only infrastructure investment but also policies that promote AI accessibility, afford-
ability, and literacy.

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