GEBZE, Türkiye, Nov 14 2025 (IPS) – Artificial intelligence (AI) is rapidly changing our world. It has helped a few companies in developed countries set record-breaking profits. Last month, Nvidia, a leading US AI company, hit a market value of USD 5 trillion.
Nvidia, together with the other six technology companies known as the Magnificent Seven, reached a market capitalisation of USD22 trillion. This value easily eclipses the combined GDP of the world’s 44 Least Developed Countries (LDCs), Small Island Developing States and Landlocked Developing Countries.
These businesses continue to make massive investments in this transformational technology. Not only are investments being made in AI for the future, but benefits are also already being reaped as it accelerates global commerce and rapidly transforms markets.
According to the World Economic Forum, AI is streamlining supply chains, optimising production, and enabling data-driven trade decisions, giving companies a big competitive edge in global markets.
Thus far, the beneficiaries have been those living in the developed world, and a few developing countries with high technological capacities, like India.
By and large, developing countries have lagged far behind this technological revolution. The world’s 44 LDCs and the Small Island Developing States are those that have been almost completely left out.
According to UNCTAD, LDCs risk being excluded from the economic benefits or the AI revolution. Many LDCs and Small Island Developing States struggle with limited access to digital tools, relying on traditional methods for trade documentation, market analysis, and logistics. This is happening as others race ahead.
This widening gap threatens to marginalize these countries in international trade and underscores the urgency of ensuring they can participate fully in the AI-driven global economy.
AI holds transformative potential for developing countries across sectors critical to economic growth and trade. The World Bank has noted that in agriculture, AI-driven tools can improve crop yields, forecast market demand, and enhance supply chain efficiency. It can also strengthen food security and export earnings. In trade and logistics, AI can optimize operations, reduce transaction costs, and help local producers access new markets.
Beyond commercial applications, AI can bolster disaster preparedness, enabling governments and businesses to allocate resources efficiently and minimize losses. The use of AI can be a game changer in responding to massive natural disasters such as the one caused by Hurricane Melissa in Jamaica a few days ago.
Despite these opportunities, the poorest and most vulnerable countries face significant hurdles in accessing and benefiting from AI. The International Telecommunications Union has noted that many countries lack reliable electricity, broadband connectivity, and computing resources, impeding the deployment of AI technologies. This is compounded by human capacity constraints and limited fiscal space to make the requisite investments.
Given this, what is the best way forward for the world’s poorest and most vulnerable countries? Firstly, policy and governance frameworks for leveraging AI for development transformation are urgently, and we can learn from others.
For example, Rwanda, a leader in the field of using technology to drive transformation has developed a National Artificial Intelligence Policy. Another example is Trinidad and Tobago, which recently established a Ministry of Public Administration and Artificial Intelligence.
Secondly, capacity building, especially for policy leaders, is key. This must be augmented by making the requisite investments in universities and centers of excellence. Given the importance of low-cost and high-impact solutions, building partnerships with institutions in the global south is absolutely vital.
Finally, financing remains key. However, given the downward trends in overseas development assistance, accessing finance, especially grant and concessional resources from other sources will be important. Consequently, international financial institutions, especially the regional development banks, have a critical role to play.
Since the countries themselves are shareholders, every effort should be made to establish special purpose windows of grants and concessional financing to help accelerate adoption of relevant, low-cost, relevant and high-impact AI technological solutions.
In an adverse financing environment, achieving the above will be difficult. This is where Tech Diplomacy comes in and must be a central element of a country’s approach to foreign policy. This will be the subject of another piece.
In summary, AI is shaping and changing the world now. For the poorest and most vulnerable countries, all is not lost. With strategic investments, forward-looking and inclusive policies, and international cooperation via Tech Diplomacy, AI can become a powerful tool for their sustainable growth and development.
Read more on IPS Inter Press Service – Global News Agency
