AI: Fostering Inclusive Growth or Deepening the Divide?
Artificial intelligence (AI) is here and promises a revolution. AI use reaches across industries and economies. With its exciting embrace, a crucial question lingers: will AI deepen the rich/poor economic divide or foster inclusive growth? As a consulting firm involved in inclusive finance for growth, we have a view on critical issue.
Looming Threat of the Widening the Gap
On the one hand, AI is a real economic promise and on the other, it poses a significant threat of widening existing inequalities. Limited access to technology, digital literacy gaps, and affordability hurdles can leave large segments of the population on the wrong side of the AI divide. This can manifest in several ways such as:
- Job displacements as AI-led automation obviates certain jobs, disproportionately impacting low-skilled workers in developing countries.
- Unequal access to benefits as AI-powered healthcare, education, and financial services prove out of reach for those lacking digital access and knowledge.
- Algorithmic bias, because AI tools trained on biased data can perpetuate discrimination and further marginalize vulnerable groups.
The Untapped Potential for Shared Prosperity.
AI is not just a puller of inequality. It can also be a powerful tool for inclusive growth when harnessed responsibly. Here are some possibilities for beneficial use:
Skilling and reskilling – AI can personalize learning experiences, upskilling modestly trained workers for the jobs of the future and thus mitigating job displacement.
Promoting financial inclusion – AI powered solutions can expand access to microfinance, credit scoring, and other financial services for underserved communities.
Democratizing innovation – AI platforms can empower entrepreneurs and small businesses in developing countries, fostering grassroots innovation relevant to their context.
How Can Businesses Bridge the Divide?
For firms seeking to promote inclusive growth through AI, these proactive suggestions can work:
Invest in responsible AI development focusing on data fairness, algorithmic transparency, and mitigate potential biases.
Partner with local communities, collaborate with NGOs, educational institutions, and community leaders to understand local needs and design AI solutions with impact.
Support digital literacy initiatives by offering training programs and workshops to bridge the digital skills gap and empower communities.
Advocate for responsible AI policies, encouraging governments and international organizations to implement regulations promoting ethical and inclusive AI development.
Conclusion: A Collective Effort
Bridging the digital divide and harnessing AI for inclusive growth require a collective effort. Businesses, governments, civil society, and individuals must collaborate to ensure AI benefits all, not just a few. By embracing responsible AI development, investing in digital literacy, and fostering inclusive solutions, we can unlock the true potential of this technology to create a more prosperous and equitable future for all.
Keren Obara. Digital Marketing Associate. FRIENS Consult Ltd.