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Artificial Intelligence (AI) has emerged as a transformative force in the global economy, positioning itself as a cornerstone of the fourth industrial revolution. From theory to practical solutions AI has grown rapidly over the last decade. Defined as a simulation of human intelligence, AI combines technologies like machine learning, natural language processing, and robotics to solve business, economic, and social problems.
From healthcare to finance, agriculture to manufacturing, AI is changing traditional practices, leading to increased productivity, growth, and new models of business. The rapid evolution from a theoretical concept to practical applications has positioned AI as a critical driver of economic growth and competitiveness.
The impact of AI on developing economies can be illustrated through the experiences of regions like Africa and India. According to a report by Microsoft, AI is projected to contribute a staggering USD 1.2 trillion to Africa’s economy by 2030. In India, similar projections have been made, where AI is expected to significantly enhance productivity across industries. The 2023 Ernst & Young report evaluated the contribution of Generative AI to India’s economy at approximately USD 1.2-1.5 trillion in the next seven years, potentially increasing GDP by 5.2%-7.9%.
A couple of notable contributions that AI has made across industries to the African economy include Precision Farming in Agriculture and Disease Diagnosis and Management in Healthcare. AI-driven technologies like drones and sensors help monitor crop health, optimize irrigation, and manage pests, significantly increasing yields and reducing waste. For instance, startups like Aerobotics, a South African company, use AI and drone technology to provide detailed crop analytics to farmers. In healthcare, AI applications have improved diagnostic accuracy and patient management. Tools like IBM’s Watson Health provide insights and recommendations for treatment plans, helping healthcare professionals address diseases such as cancer and diabetes more effectively.
Similarly in India, AI is remarkably being used for Fraud Detection and Risk Management in Financial Services, and for Personalized Learning in Education. Companies like HDFC Bank use AI algorithms to analyze transaction patterns and detect anomalies, thereby preventing fraud. Likewise, AI-powered platforms like Byju’s offer personalized learning experiences for students, adapting to their learning pace and style. This has democratized access to quality education, helping millions of students across the country improve their academic performance.
These contributions and their projected impact highlight the potential of AI in driving economic expansion, job creation, and productivity improvements. The lessons learned from Africa and India can provide valuable insights for other developing countries like Bangladesh in leveraging AI for economic growth and development.
According to The World Bank, Bangladesh has an average growth rate of 6.6% over the decade with 5.8% in 2023. PwC estimated the total contribution of AI to the global economy at USD 17 trillion by 2030. Given the estimated contributions of AI to the Indian economy, AI could potentially generate billions of dollars for the Bangladesh economy.
Four sectors in Bangladesh where AI can create a critical impact:
Prominent Bangladeshi organizations are already at the forefront of AI innovation. For example, Intelligent Machines (IM) is a leading AI company in Bangladesh dedicated to using AI capabilities to solve problems and drive efficiency across various sectors. IM has successfully implemented AI in different companies across telecom, financial institutions, and fast-moving consumer goods. Their AI-based services are reported to provide solutions with over 90% accuracy.
The results that IM has provided thus far through AI integration are noteworthy. Unilever has achieved a 260% stretch target in 2021 using Fordo, a precision marketing AI product. BAT gained 253% improvements in brand campaign execution accuracy in 2021 using Shobdo, a speech recognition AI product. bKash gained 76% productivity and a 15% monthly onboarding growth rate with the help of Nimonton and Biponon, two retail AI products. IDLC Finance processes CIB reports in under 30 minutes using Dharapat, a FinTech AI product. Finally, Telenor saved 92.5% cost of completing 25 million KYCs in Myanmar using Borno and Chotur, two document verification AI products.
The adoption of artificial intelligence in Bangladesh is still in its infancy, both for AI solution providers and their clients. Companies are reluctant to embrace AI solutions, not only due to a lack of infrastructure but also because of a shortage of understanding of these solutions. There may also be a reluctance to embrace AI solutions due to data privacy concerns. Similarly, the local growth of any AI-based service provider hinges on the readiness of consumers to adopt to the technology. Finally, the availability of data is also a concern since, without data synthesizing, the precision of AI solutions depends on the amount of relevant data fed to AI bots for machine learning.
Given this scenario, it is challenging for the government to craft policies that properly regulate the use of AI. It becomes a dilemma of whether the government should allow AI to proliferate for the sake of innovation or whether strong regulations should be in place well beforehand to uphold data privacy. Perhaps the best practice would be to scale the balance equally between innovation and regulation.
From enhancing productivity and efficiency to fostering innovation and creating new avenues for growth, AI is catalyzing change. By investing in AI education and infrastructure, Bangladesh can position itself as a hub for innovation, attracting investment and talent while unlocking new opportunities for socioeconomic development.
The ICT Division of the Bangladesh government has drafted a National AI Policy to address the AI adoption and implementation challenges. The policy expands to ten sectors, including telecommunication, data governance, environment, energy, and climate change. It introduces a robust framework for ethics, data privacy, and security, proposing the establishment of an independent National AI Center of Excellence and a High-Level National AI Advisory Council for the facilitation and regulation of AI services. The policy also provides detailed implementation plans for government ministries, academia, and private institutions. The objective is continuous monitoring, evaluation, and alignment with global advancements. It also addresses other challenges more thoroughly, offering specific mitigation strategies for data privacy, cybersecurity, and risk management.
Comparing the potential impact AI can have on Bangladesh with other developing countries like India and Africa, reveals similar opportunities for economic evolution. As AI continues to engage with every corner of society, education and awareness of the usage and benefits of AI are paramount. Adopting best practices, investing in infrastructure, and fostering a culture of innovation will be crucial in harnessing the benefits of AI.
This article was originally published in The Daily Star.
Rafsan Zia, Digital Product Manager & Business Consultant at LightCastle Partners has prepared this write-up. For further clarifications, contact here: [email protected]
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