AI in Davos 2025: Driving Global Growth and Overcoming Regional Challenges

"AI has the potential to increase global growth, but preparation and unequal access among countries are significant challenges."

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At a World Economic Forum panel, VJ Vtis Waren, Innovation Editor for Energy and Climate at The Economist, moderated a vital discussion on how artificial intelligence (AI) can avoid the pitfalls of the digital divide, instead promoting global equality. The discussion featured prominent figures such as Dr. Kristalina Georgieva of the IMF, Paula Ingabire, Rwanda's Minister of Information Technology, Hatem Dowidar, CEO of the e& group, Bill Thomas, Global CEO of KPMG, and Brad Smith, Microsoft Vice President.

The Promising Potential of AI

Dr. Kristalina Georgieva highlighted that AI has the potential to increase global economic growth by 0,8%, promising a significant boost at a time when growth is insufficient to meet the aspirations of people and businesses in many regions worldwide. However, she warned of substantial differences in readiness to adopt this technology between advanced economies and developing countries. The AI readiness index, developed by the IMF, measures digital connectivity, labor market robustness, and regulatory effectiveness, revealing significant disparities among nations.

These differences become evident when noting that while 60% of jobs in advanced economies are exposed to AI—offering opportunities for productivity gains or risks of replacement—that number drops to 40% in emerging markets and only 26% in low-income countries. IMF research also reveals a worrying gap of approximately 50% in the ability to translate AI advances into real economic growth between the most developed economies and lower-income nations.

Dr. Georgieva emphasized that although many revolutionary technologies faced similar challenges in their early adoption, such as electrification and the internet, AI offers a unique chance to correct these inequalities through applications that can be implemented even in limited infrastructure contexts. For example, artificial intelligence can provide more accessible health diagnostics, improve access to educational materials, and offer early warning systems for farmers—all through mobile devices.

However, for AI to become an integral part of economic growth, more is required than just access to mobile devices. Investment is needed in data production capacity and the infrastructure necessary to run complex AI systems, which are often energy-intensive. This complexity highlights the importance of collaborative and regional approaches to overcome common barriers and maximize AI’s positive impact.

To learn more about how AI is transforming the economic landscape, see our article on the AI economic revolution.

Challenges and Opportunities in Africa

Minister Paula Ingabire shared insights on AI's potential impact in Rwanda, projecting a contribution of up to 6% to GDP using basic use cases. This potential is based on practical applications already being explored, such as early warning systems for farmers, who make up most of the country's population, and public administration, where efficiency in processes like tax collection and social security claims can be significantly improved.

She emphasized the importance of expanding digital coverage, noting that although Rwanda already has a population coverage of 93%, a significant usage gap remains due to factors such as limited digital skills, restricted access to affordable devices, and competitively priced internet connectivity. This challenge is reflected in many African countries, where infrastructure may be limited but opportunities for growth through AI are vast.

Ingabire emphasized that for Rwanda, the AI journey is not just about implementing technology, but also about ensuring the country does not fall behind. This means not only increasing access to digital technology but also integrating access to energy, as the demand for electricity will rise with the expansion of AI use. Currently, Rwanda has already achieved 81% household electricity access, but new strategies will be needed to meet future demands.

She highlighted the importance of regional collaboration, citing initiatives such as the African Union's strategy for a continental approach to AI. This collaboration is vital to overcome resource limitations and create economies of scale, especially in areas like data sharing and energy infrastructure development, where countries can work together to meet intermittent or excessive energy demands.

For more information on how AI is being adopted innovatively in Africa, check out our article on Digital Employees.

Regional Collaboration as the Key to Progress

The discussion emphasized how regional collaboration can help overcome resource limitations, being a crucial element for technological advancement in regions with limited infrastructure. Hatem Dowidar highlighted the essential role of regional alliances to share critical resources such as energy and data, which are fundamental for training AI models. In many cases, individual countries may not have the capacity to support the energy load or data volume necessary for effective AI development, making transnational collaboration not just desirable but necessary.

Brad Smith from Microsoft underscored the importance of creating a "data zone" in East Africa, where infrastructure could serve multiple countries simultaneously, facilitating AI growth and deployment. This approach not only maximizes the use of existing resources but also promotes deeper economic integration among countries, creating a cohesive regional market for AI services. Smith pointed out that by building these shared data zones, it is possible to create an environment where innovation can thrive, with companies and governments collaborating to develop solutions that benefit the entire region.

Creating such zones requires robust intergovernmental agreements to ensure efficient and secure cross-border data and energy flows. Additionally, implementing common standards for data protection and cybersecurity becomes essential to maintain trust among participating countries. This collaboration can be seen as a model for other regions of the world facing similar challenges, demonstrating that through unified efforts, significant advances in the adoption and development of emerging technologies like AI can be achieved.

Education as a Pillar of Digital Transformation

One of the most critical points raised was the significant shortage of data scientists in Africa, a continent with vast potential but still underrepresented in the global technology arena. For every 14 data scientists in Europe, there is only one in Africa, highlighting the urgency to invest in education and skills development in this area. Dr. Kristalina Georgieva emphasized that beyond improving physical and digital infrastructure, educational empowerment is crucial for emerging countries to compete on the global AI stage.

Developing a robust education ecosystem that prioritizes data science and digital skills is vital not only to foster local talent but also to prevent brain drain, where qualified professionals seek opportunities outside the continent. This can be achieved through partnerships between governments, higher education institutions, and the private sector, who together can create relevant curricula and practical training programs that meet current labor market needs.

Furthermore, online and remote training initiatives can play a crucial role in democratizing knowledge access, enabling students from different regions to access quality educational resources regardless of geographic location. International collaboration can also offer exchange and training opportunities, exposing African students and professionals to global best practices and fostering a culture of innovation and entrepreneurship.

For insights on mastering AI and the benefits of machine learning, explore our AI learning guide with Python. This resource can be a valuable starting point for those seeking to enter the fields of artificial intelligence and data science, equipping themselves with the skills needed to contribute significantly to digital transformation in their communities.

Regulatory and Sovereignty Challenges

Data sovereignty and regulation were highlighted as significant barriers to AI expansion in emerging markets, reflecting the complexity of balancing technological innovation with national security and privacy demands. Hatem Dowidar stressed the need to relax data sovereignty issues, pointing out that rigid policies can inhibit the information exchange needed for AI development, especially in regions where access to large data volumes is limited. He suggested a balanced approach could allow cross-border data collection and use while respecting citizens' privacy rights and data integrity.

Brad Smith, in turn, highlighted challenges posed by trade restrictions, such as US export limitations on chips to China. He argued that while these restrictions may have security motives, it is essential that US allies continue to have access to these critical resources. Otherwise, we risk stifling global technological growth and creating an even more fragmented environment where countries cannot effectively collaborate on innovations that benefit everyone.

Moreover, Smith suggested that international agreements should be explored to facilitate the secure flow of technology and data, to avoid protectionist policies becoming obstacles to progress. He emphasized that in an increasingly interconnected world, creating regional "data zones" could be a practical solution to promote innovation while keeping sovereignty concerns in check.

These discussions highlight the importance of establishing regulations that balance the need to protect sensitive data with the urgency to promote technological innovation. For emerging markets in particular, finding this balance is crucial to ensure they can fully participate in the global digital economy, benefiting from AI opportunities without compromising national security or citizen privacy.

For more information on AI security and cybersecurity, read about the MITRE ATLAS.

Conclusion

The panel concluded that AI represents an unprecedented opportunity to boost global economic growth but also presents significant challenges in preparation, regulation, and capacity building. Regional collaboration, investment in education, and regulatory adaptation are essential to ensure all countries can equally benefit from the AI revolution.

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