Strategic positioning for AI.

 

To seize the opportunities offered by AI, developing countries need to strategically position themselves for structural transformation and provide a fertile environment in which AI-empowered businesses can thrive. Key to this is close cooperation among public authorities and ministries, such as those for STI, industry and education. These ministries can also work with stakeholders to identify and sustain AI applications for sustainable development, particularly those that incorporate social, economic and environmental considerations, such as creating and augmenting jobs and encouraging the green transition. Strategic positioning to leverage AI for sustainable development can be coupled with a gap analysis to link the vision with actual actions, to make it a reality. The frontier technologies readiness index helps identify areas in which countries need to improve. This section offers country snapshots and Governments should carry out more comprehensive assessments of strengths and weaknesses and of capabilities and gaps along the three critical leverage points of infrastructure, data and skills. The key elements shown in table III.2 can be used as starting points for actions to empower agents, who can operate along the five As framework (box III.1). In addition, a thorough assessment of AI-related opportunities and challenges, along with foresight exercises on longerterm science and technology scenarios, can help identify actions to direct an economy towards preferred futures.  

Technology assessment should include stakeholder engagements to map the STI ecosystem and formulate STI plans that align with national objectives and the opportunities and challenges posed by frontier technologies. UNCTAD helps developing countries in technology assessment and its STI Policy Review programme supports STI system policies and plans. Based on a gap analysis, countries can establish their own catch-up trajectories, to move from current technological and productive capacities to the desired targets. Some developing countries in Africa and South-East Asia have strengthened their infrastructure to support Internet usage and cross-border connectivity. China has established a strong advantage in data affordability and quantity. China, Brazil and India have produced a large pool of AI developers. These illustrate different catch-up trajectories and highlight the importance of policy efforts in order to enhance preparedness in the light of the rapid evolution of AI. Technological catch-up is closely tied to a country’s readiness to embrace new technological waves. The adoption and development of AI hinge on the necessary digital infrastructure, capacity for data collection and transmission and a mix of sector-specific and digital skills, which can be strengthened by dynamic interactions between users and producers.  

Currently, AI technology development is largely controlled by a handful of companies and countries. Yet smaller firms in other countries can adopt and adapt the technologies, fostering market niches in different industries and enhancing their competitiveness in both domestic and international markets. Cumulative effects play an important role in the AI innovation ecosystem, making it difficult for latecomers to catch up in innovation capacities. This requires a careful consideration of the characteristics of new digital technologies. In general, hardware development is associated with product innovation and is typically organized along with formal R&D and strong industry and university linkages. The software segment is linked to processes and service innovations, which rely on widely dispersed informal activities and interactions among developers, users and global actors. Such interactions require a rethinking of industrial and innovation policies that is discussed in the next section.