The Intersection of AI and Emerging Markets: Opportunities and Challenges

In recent years, artificial intelligence (AI) and machine learning (ML) have become pivotal in transforming industries worldwide. Emerging markets, in particular, stand at a unique crossroads where the adoption of AI could significantly influence their futures. Here’s my perspective on AI’s potential and challenges within these burgeoning economies, and specifically on Colombia.

Defining AI in emerging markets

Artificial intelligence in the context of emerging markets is any type of machine learning, whether stand-alone or integrated into existing software, that can be utilized globally. This broad definition encompasses a range of applications, from automated decision-making systems to sophisticated data analysis tools.

The crucial role of AI in development

The AI and ML revolution is already underway globally. Emerging markets must adapt to avoid being left behind by more mature economies, which would widen the wealth and skills gap. By integrating AI, these markets can leapfrog traditional development stages, potentially accelerating economic and social progress.

AI presents numerous opportunities for emerging markets. Advances in AI can revolutionize business operations, making them more efficient and innovative. For instance, in infrastructure, AI can pinpoint areas needing development such as roads and utilities, ensuring resources are allocated effectively.

Industries set to benefit the most

Emerging markets focused on agriculture, tourism, and manufacturing stand to gain significantly by applying AI to all industries, not just traditional ones. In tourism, for example, AI can enhance customer experiences through personalized recommendations and efficient service delivery. Manufacturing sectors can leverage AI for predictive maintenance, quality control, and supply chain optimization. In finance, AI could increase access to social assistance programs and identify underserved markets.

Challenges in implementing AI

Despite the potential, there are significant challenges to implementing AI in emerging markets. These include lack of internet access, inadequate infrastructure, and limited access to technology. For example, in Colombia only 75 percent of the population has regular internet access, and while more people own cellphones, only about 40 percent have laptops. (Source: Digital 2024: Colombia, DataReportal, Global Digital Reports.)

Overcoming challenges to developing AI

Emerging markets must address these hurdles to fully harness AI’s potential. First, building out telecom infrastructure is essential. Reliable internet access is crucial for utilizing and developing AI technologies. Second, investing in education and talent within the AI and ML fields is vital. Encouraging more individuals to pursue careers in these areas will create a skilled workforce capable of driving innovation. Third, implementing regional data-sharing policies can foster collaboration and growth. In Latin America, for instance, a cross-border open data policy would enhance the collective impact of AI initiatives between countries. Lastly, establishing ethical and strategic frameworks will guide the responsible development and use of AI, ensuring it benefits society as a whole. Colombia is at the forefront of countries using government initiatives to establish AI frameworks.

Economic impact of AI

AI has the potential to both displace and create jobs in emerging markets. While AI might replace roles that include routine decision making, it can also stimulate economic growth by fostering AI and ML startups. These startups, like Rappi, NUXTU, and 1DOC3 in Colombia, create jobs and drive innovation, contributing to economic resilience and diversification. In 2019 in Colombia, four out of five large businesses were already utilizing AI in their practices. By 2025, that number should be closer to five large businesses, according to The Global AI Agenda: Latin America in MIT Technology Review Insights.

Social impact of AI

The social implications of AI in emerging markets are multifaceted. On one hand, AI can improve healthcare outcomes by enabling faster diagnoses and treatment plans, leading to healthier populations. On the other hand, the adoption of AI might face resistance due to cultural and technological barriers. Communities might choose to embrace or reject AI based on their specific contexts and needs.

Job creation versus displacement

While AI may impact certain jobs, it will also create new roles that require human ingenuity and oversight. For example, prompt engineering and data auditing are emerging fields within AI that necessitate human expertise. Furthermore, the demand for specialized AI models tailored to specific industries will drive job growth in engineering and development.

Future outlook

Looking ahead, the future of AI in emerging markets is filled with potential. I believe that with the right investments in infrastructure, education, and ethical frameworks, these markets can harness AI to improve health and wellness, drive economic growth, and enhance quality of life. As an idealist, I am excited to see how the world will leverage the power of machine learning to create a brighter, more inclusive future.

About Keegan Fonte, MBA ’25

Keegan Fonte is a student enrolled in the Executive MBA Metro NY program at the Samuel Curtis Johnson Graduate School of Management and an Emerging Markets Institute fellow. A global product executive intensely interested in AI’s impact on emerging and global markets, he served as the 2023-24 president of the AI Club at Cornell. He has spent his career bringing new products to market by leading go-to-market product launches for software as a service (SaaS), AI, human capital management, consumer product goods, and more, around the world. He loves spending time with his two daughters and his wife, Junenoire. He also enjoys learning, cooking, and rooting for the Dodgers.