AI as the Engine of Emerging Market Prosperity: The Global South Advantage

 With innovation-driven strategies, the Global South is poised to turn AI into a driver of long-term wealth

Introduction

Artificial Intelligence (AI) has rapidly moved from being a futuristic concept to a transformative force reshaping economies worldwide. For emerging markets, where structural challenges often coexist with high-growth potential, AI offers both a catalyst and a compass for creating sustainable wealth. Its integration across sectors can unlock productivity, foster innovation, and accelerate inclusive development—potentially allowing these economies to leapfrog traditional development pathways.

Unlocking Productivity Gains

One of the most immediate contributions of AI to wealth creation is in productivity enhancement. Emerging markets often face constraints such as low labour efficiency, inadequate infrastructure, and fragmented supply chains. AI-powered solutions—from predictive maintenance in manufacturing to smart logistics in agriculture—can mitigate these inefficiencies.

In India, startups like CropIn and Fasal are using AI-based crop analytics to guide farmers on irrigation, pest control, and fertilizer use, boosting yields while reducing input costs. In China, AI-driven smart factories are deploying robotics and computer vision for quality control and predictive maintenance, raising industrial productivity and narrowing the technological gap with advanced economies. Similarly, in Brazil, AI applications in logistics are optimizing commodity supply chains, cutting costs in agriculture exports like soybeans and coffee.

Driving Innovation and Entrepreneurship

AI lowers the entry barriers for innovation by providing affordable and scalable tools for startups and small businesses. Cloud-based AI services, open-source models, and no-code/low-code platforms enable entrepreneurs to access capabilities once reserved for global tech giants.

For example, India’s fintech ecosystem—home to players like ZestMoney and KreditBee—uses AI for credit scoring and lending to individuals and MSMEs without formal credit histories. In China, giants like Ant Group and WeBank use AI-driven risk assessment and digital platforms to bring millions of unbanked citizens into the financial system. In Kenya, AI-enabled mobile platforms like M-Shwari extend microcredit and savings products to rural households, showcasing how innovation can spread wealth to the grassroots.

Financial Inclusion as a Growth Multiplier

Wealth creation in emerging economies cannot be separated from financial inclusion. AI is playing a pivotal role in expanding access to banking, insurance, and investment products.

In India, the success of the Unified Payments Interface (UPI)—processing billions of transactions monthly—has been amplified by AI-driven fraud detection and transaction monitoring, making digital payments both safer and more efficient. Platforms like Paytm and PhonePe are embedding AI to improve user experience, detect suspicious patterns, and provide customized financial products. In China, AI-powered robo-advisors like Lufax are offering low-cost investment services to retail investors, while across Southeast Asia, firms such as Advance.AI are extending credit scoring and digital lending to underbanked communities. Together, these advances democratize wealth creation opportunities for rural households, women entrepreneurs, and informal sector workers.

Strengthening Human Capital

AI is often portrayed as a threat to jobs, but in emerging markets it can also be an enabler of human capital development.

In India, edtech platforms such as Byju’s, Vedantu, Unacademy, and upGrad are leveraging AI to personalize learning, adapt content delivery, and enhance test preparation. For instance, AI chatbots provide instant doubt resolution, while adaptive learning systems track student progress and recommend customized study plans. In China, Squirrel AI is providing AI-based personalized tutoring for millions of schoolchildren, while in Brazil, platforms like Descomplica are using AI to widen access to affordable higher education. Meanwhile, countries like Vietnam and Philippines are positioning themselves as hubs for AI-enabled business process outsourcing (BPO), turning their young, skilled workforce into a global service advantage.

AI in Healthtech: Building Resilient Societies

Beyond education, AI is reshaping healthcare in emerging markets, with significant implications for human capital and wealth creation.

In India, startups such as Niramai use AI-driven thermal imaging for early breast cancer detection, while SigTuple employs computer vision to automate blood sample analysis. Telemedicine platforms like Practo are integrating AI for patient triage and medical record analytics. In China, AI is being widely applied in hospitals for diagnostic imaging and patient monitoring, with companies like Ping An Good Doctor offering AI-powered health consultation to millions. In Africa, AI initiatives such as mPharma are using predictive analytics to improve medicine supply chains and ensure affordability. These innovations not only reduce healthcare costs but also enhance workforce productivity and longevity, contributing directly to wealth creation.

Accelerating Sustainable Development

Emerging markets are disproportionately affected by climate risks, which can erode wealth and exacerbate inequality. AI contributes to sustainability by enabling precision agriculture, optimizing renewable energy grids, and predicting natural disasters.

In India, AI is being applied to solar energy forecasting and smart grid management by companies like ReNew Power, helping to stabilize renewable energy integration. In China, AI models are being deployed for real-time monitoring of air pollution and energy efficiency in urban areas. In South Africa, AI-enabled early warning systems are being tested to predict droughts and floods, protecting communities and agricultural livelihoods.

Governance and Policy as Enablers

While the promise is vast, realizing AI’s wealth-creating potential in emerging markets depends heavily on governance. Investments in digital infrastructure, data protection frameworks, ethical AI guidelines, and public-private partnerships are essential.

For instance, India’s National AI Strategy (NITI Aayog) emphasizes inclusive growth and AI applications in agriculture, healthcare, and education. China’s New Generation AI Development Plan (2017) has positioned the country as a global AI powerhouse, with massive state support for R&D and commercialization. Other emerging markets, such as Brazil and Indonesia, are drafting national AI roadmaps, reflecting growing recognition of AI as a driver of long-term prosperity.

Conclusion: A New Frontier for Prosperity

AI offers emerging markets a rare opportunity to reshape their growth story. By boosting productivity, empowering entrepreneurs, expanding financial inclusion, strengthening human capital, and fostering sustainability, AI can accelerate the transition from factor-driven growth to innovation-led prosperity. If nurtured with the right policies and investments, AI has the potential to become not just a tool of efficiency, but a cornerstone of wealth creation for billions across the Global South.