The United Nations Conference on Trade and Development has just released its latest report, 'Unleashing the Potential of AI: Reshaping the Entrepreneurial Ecosystem in Developing Countries'. The report highlights that AI technologies hold immense promise for boosting the productivity, innovation prowess, and market reach of micro, small, and medium-sized enterprises (MSMEs) as well as startups in the developing world. Nevertheless, harnessing this potential hinges on robust institutional backing, capacity enhancement, and collaborative ecosystem efforts.

Studies reveal a stark contrast in the effectiveness of AI applications between enterprises in developed and developing countries. The root causes lie in the varying degrees of digital infrastructure completeness, skill availability, and business adaptability. By automating tasks, optimizing supply chains, and personalizing marketing efforts, AI technologies can slash operational costs and amplify efficiency for businesses. However, to fully unlock their value, structural hurdles such as data accessibility, computational support, and process adaptability must be overcome.

The report underscores the urgent need for developing countries to cultivate a conducive institutional environment, bolster support service systems, and ease the path to AI adoption for businesses through tailored financial instruments. Moreover, it advocates for the establishment of a risk management framework, with shared responsibilities between developers and deployers, to systematically propel the transformation of AI technologies into tangible productive forces.