Will AI Leave Developing Economies Behind?
Every major technological revolution has transformed economies, but not all have reduced inequality. From mechanisation during the Industrial Revolution to the rise of the Internet, technological progress has often rewarded those best positioned to adopt it first. Artificial Intelligence may be no different. Because its benefits depend on capital, digital infrastructure, skilled workers, and strong institutions—resources already concentrated in wealthier countries—AI risks widening global inequality by amplifying existing advantages. For developing economies still climbing the ladder of industrialisation, the greater danger is that the ladder itself may be dismantled before they reach the top. Economic development has historically depended on technology diffusion, the process through which innovations spread from richer economies to poorer ones. As countries adopt new technologies, they become more productive, attract investment, and gradually close the income gap with richer economies...