Breaking news indicates that the World Bank has underscored the transformative potential of ‘small AI’ on developing countries. Rather than competing in building large scale AI models with global superpowers like the U.S. and China, the World Bank president Ajay Banga advocates for a more practical approach that involves developing smaller, targeted AI applications requiring less computational power.
Banga’s emphasis is on the area of healthcare, agriculture, education, and financial services. He stated that by focusing on purpose-built AI tools that are accessible, affordable and meet local needs, developing economies could expedite their economic development. These AI-based applications serve as alternatives to more extensive and cost-intensive infrastructure developments.
The International Monetary Fund (IMF) likewise notes that AI trade has grown by 29% in two years, outpacing overall commerce. Although this development has significant impacts on global job markets, as 40% of jobs may be transformed or even eliminated, Africa’s spending on AI still maintains global growth around 3% amidst energy supply disruptions.
The international financial institution also highlights that directing resources towards suppliers and manufacturers who can capitalize on the AI boom is a pivotal aspect for these economies. However, the competitiveness of this approach still remains unclear and subject to future analysis.
Banga urged Thailand and its Association of Southeast Asian Nations (ASEAN) counterparts to employ ‘small AI’ for boosting the competitiveness of smaller enterprises. These businesses often face hurdles in acquiring financing, adopting technology, and developing their workforce. Besides, his focus remained on propelling the economic transformation leveraging sectors including tourism, agribusiness, and digital services.
Despite the promising development the ‘small AI’ approach might bring, sources indicate that the rapid adoption of AI must be balanced with comprehensive safeguards that protect against potential privacy breaches, cyberattacks, and misuse of personal information.
The World Bank and IMF have called for an international cooperation to regulate and manage transformative technology, including AI’s potential and the risks that accompany its adoption, especially in the developing world.
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