AI Unleashed: Driving Growth in Developing Economies
Artificial Intelligence is no longer a distant promise for the world’s most advanced economies. In 2025, AI is a powerful engine of transformation across developing nations, fueling new growth, inclusion, and resilience. From rural farms to bustling cities,
AI-driven solutions are helping emerging markets leapfrog legacy barriers, opening up opportunities that were unimaginable just a decade ago. Below, we explore the expanding impact of AI across a range of sectors, highlighting real-world examples and the new possibilities they unlock.
AI is quietly revolutionizing agriculture, the backbone of many developing economies. In Kenya, Twiga Foods uses AI-powered logistics platforms to connect smallholder farmers directly with urban markets, reducing food spoilage and boosting incomes. In India, startups like CropIn and AgNext have equipped millions of farmers with mobile apps that use AI to diagnose crop diseases from photos, predict weather patterns, and recommend optimal planting times. These tools enable data-driven decisions that increase yields and reduce losses.
Elsewhere, Brazil’s Solinftec leverages AI and IoT sensors to optimize sugarcane farming, analyzing real-time data on soil, weather, and crop conditions to maximize efficiency and minimize waste. In Nigeria, Hello Tractor’s AI-driven platform connects smallholder farmers with available tractors, making mechanization accessible to those who previously relied on manual labor. Meanwhile, Vietnam’s MimosaTEK uses AI-driven sensors and analytics to help farmers manage irrigation and fertilizer use, conserving resources and increasing productivity. These innovations are improving food security and making agricultural value chains more resilient to climate shocks and market fluctuations.
Healthcare systems in developing countries often struggle with limited resources and uneven access to expertise. AI is bridging these gaps in remarkable ways. In Nigeria, Ubenwa’s AI technology analyzes the cries of newborns to detect birth asphyxia, enabling early intervention in clinics where specialized doctors are scarce. During the COVID-19 pandemic in Bangladesh, AI chatbots were deployed to triage symptoms and direct patients to appropriate care, easing the burden on overstretched health systems.
South Africa’s hearX Group developed AI-powered smartphone apps that provide affordable hearing tests in remote communities, expanding access to essential care. In India, Qure.ai’s AI algorithms interpret chest X-rays and CT scans, helping rural doctors quickly diagnose tuberculosis and other diseases. In Brazil, Laura, an AI-powered virtual nurse, monitors hospital patients and alerts staff to early signs of sepsis, reducing mortality rates and improving outcomes. These examples show how AI is democratizing access to medical expertise and improving health outcomes in regions where resources are stretched thin.
The financial sector in emerging markets is a proving ground for AI-driven inclusion. In Brazil, Nubank uses AI-powered credit scoring and fraud detection to provide banking services to millions who were previously excluded from the formal financial system. In Nigeria, Carbon and FairMoney analyze alternative data—such as mobile phone usage and utility payments—to assess creditworthiness and offer microloans, bringing digital banking to the unbanked.
Kenya’s M-Shwari and Tala have pioneered instant microloans by analyzing transaction patterns, providing rapid access to credit for users without formal credit histories. Indonesia’s KoinWorks employs AI to match small businesses with investors, supporting peer-to-peer lending and entrepreneurship. In Mexico, Konfío uses AI-driven credit decisions to expand access to capital for small businesses, fueling growth and job creation. These innovations are making finance more inclusive and adaptive to local realities.
AI is transforming education in developing economies by personalizing learning and expanding access. In Indonesia, Ruangguru’s AI tutors adapt lessons and feedback to each student’s needs, helping learners in remote areas overcome the limitations of teacher shortages. India’s Byju’s platform uses AI to tailor quizzes and lessons, enabling millions of students to master core subjects at their own pace.
South Africa’s Siyavula generates custom math and science exercises using AI, providing instant feedback and helping teachers identify learning gaps. In Brazil, Geekie’s adaptive learning platform adjusts content and assessments to each student’s strengths and weaknesses, while Egypt’s Nafham employs AI to recommend video lessons and quizzes based on students’ learning gaps. These solutions are making quality education more accessible and effective, preparing students for the demands of a rapidly changing world.
AI is also making inroads into the energy and utilities sector, a critical area for sustainable development. In India, Tata Power uses AI to predict energy demand and optimize grid operations, reducing outages and improving efficiency. In Kenya, M-KOPA leverages AI to manage pay-as-you-go solar energy systems, bringing affordable electricity to off-grid households. South Africa’s Eskom has begun piloting AI-driven predictive maintenance for its power plants, reducing downtime and improving reliability. These initiatives are vital for expanding access to clean, reliable energy and supporting economic growth.
Urbanization is accelerating across the developing world, and AI is helping cities manage the challenges that come with it. In Colombia, the city of Medellín uses AI-powered traffic management systems to optimize traffic flow and reduce congestion. In India, Ola and other ride-hailing services employ AI to match drivers with passengers efficiently, reducing wait times and fuel consumption. Nigeria’s MAX.ng uses AI to optimize motorcycle taxi routes, improving safety and reliability for millions of daily commuters. These applications are making urban mobility more efficient, safer, and accessible.
AI’s ability to process vast amounts of data in real time is proving invaluable for public safety and disaster response. In Indonesia, the government uses AI-powered early warning systems to detect earthquakes and tsunamis, enabling faster evacuations and saving lives. Brazil’s Civil Defense agencies employ AI to monitor weather patterns and predict floods, allowing for timely alerts and resource deployment. In Kenya, AI-driven crime mapping tools help law enforcement allocate resources more effectively, improving community safety.
The rapid adoption of AI in emerging markets is not without risks. In Southeast Asia, AI-powered voice phishing and deepfake scams have been used to impersonate relatives or officials, tricking victims into sending money. Generative AI tools have been weaponized to create fake news and impersonate public figures, influencing elections and sowing discord in several African and Latin American countries. Many developing economies lack robust regulatory frameworks for AI ethics, data privacy, and accountability, increasing the risk of misuse and bias1.
To address these challenges, some African fintechs are integrating blockchain with AI to create transparent, immutable records of transactions, building trust with users and regulators1. Governments in Kenya and Brazil are experimenting with regulatory sandboxes, allowing innovators to test AI systems under supervision while authorities develop tailored oversight. Efforts to train AI on local data and adapt language models for Swahili, Hindi, and Bahasa are making these technologies more accessible and relevant to diverse populations.
Despite short-term disruptions, the trajectory of AI in emerging markets mirrors past technological revolutions. Automation may displace some jobs, but it also creates new roles—prompt engineers, AI trainers, and data annotators are now in demand from Lagos to Jakarta. By automating routine tasks, AI frees up human ingenuity for entrepreneurship, creativity, and problem-solving.
AI is not just a tool for efficiency in developing economies—it is a catalyst for inclusive, sustainable growth. The next decade will be defined by how well emerging markets harness this power, ensuring that the benefits are broadly shared and the risks responsibly managed. Whether the future brings amplified risks or new possibilities, there is no doubt that AI will play a much larger role in daily life and economic development in the years ahead1.
