Rapid advancements in artificial intelligence (AI) have created significant challenges in the Global South, but also opportunities, highlighting the urgent need for effective regulatory and governance frameworks to prioritize the emergence of a robust AI-driven economy.
Aligning regulations with strategies for economic growth can create fertile ground for innovation in countries that still lack infrastructure; while mitigating its risk, governments should also consider AI as a catalyst for innovation-driven growth. The potential gains are substantial.
Recently, the European Union set a global precedent with the first AI-driven regulation, the EU AI Act, which encourages investment in AI research and development and the promotion of ethical standards that enhance consumer trust across industries. Developing countries, for their part, see both a need and an opportunity to catch up on adopting regulatory frameworks, while enhancing their representation on the global stage.
To that end, Nigeria has taken several steps to build its digital economy, working with the European Union through the Global Gateway Initiative, through which the European Union plans to invest at least €820 million in Nigeria’s digital transformation by the end of 2024. However, the country still needs to build a robust legal framework: its main information and communication technology (ICT) document, the Nigeria National ICT Policy, came into force in 2012, and as of now, there is no revised document. Additionally, Microsoft is reportedly considering shutting down its African development centre in Lagos, a move that could be justified by an unfavourable business climate for foreign investors. Outdated legislation provides insufficient remedies to emerging technology threats, which are also intrinsically related to lacking or reduced enforcement.
The Role of Economic Blocs
Economic blocs have played an essential role in supporting their members as they develop national directives tackling AI. The Association of Southeast Asian Nations (ASEAN) is at the forefront of supporting its members in digitalization cooperation. In the meantime, the ASEAN Digital Masterplan 2025 and the ASEAN Guide on AI Governance and Ethics promote the region’s secure and transformative digital services and technologies. As part of these initiatives, ASEAN member states’ judiciaries have enhanced collaboration to ensure that AI applications respect the rule of law, human rights and ethical principles. ASEAN’s approach to AI can be considered a model for other economic blocs.
According to PricewaterhouseCoopers, AI is projected to contribute $15.7 trillion to the global GDP by 2030; the Global North will capitalize on this growth. In Africa, Oceania and other Asian markets (excluding high-income countries), AI could contribute $1.2 trillion to regional GDP by 2030, potentially generating higher growth in the manufacturing, retail and logistics sectors. Economist Impact estimates that in Latin America, AI will contribute up to $0.5 trillion to regional GDP (or up to 5.4 percent) in the same period. Still, the region’s largest economies — Brazil, Mexico and Argentina — will be the primary beneficiaries, while less developed economies in the region may need more resources and infrastructure. While numbers show that AI’s potential to impact the economy can be positive, the lack of a regulatory framework and targeted government incentives could jeopardize this.
Another instance of the widespread use of OpenAI’s flagship tool, ChatGPT, revealed legal concerns around large language models (LLMs). The US Department of Justice and the Federal Trade Commission have initiated a series of investigations into OpenAI concerning the collection of sensitive personal information and over monopoly laws.
Another controversial topic is the data-gathering process and the conditions under which it happened. Reportedly, OpenAI used outsourced Kenyan workers, paying them less than $2 per hour to conduct various tasks, including working on AI training data sets, filtering content and providing inputs. This story underscores the contrast between the Global South and Global North: there is a growing concern about “AI colonization,” by which a few corporations and countries, mostly in the Global North, dominate the technology, widening the geoeconomic gap and exacerbating technology dependency. In simple terms, AI should be addressed by Global South countries as an opportunity to free themselves from their historical roles as resource providers and low-value exporters.
Enhancing Representation through Multilateral Platforms
During the upcoming Group of Twenty (G20) summit, which will take place in Brazil on November 18–19 this fall, the Global South agendas will include combatting hunger, poverty and inequality; promoting sustainable development; and reforming global governance. The G20’s Digital Economy Working Group will discuss “artificial intelligence for sustainable development and reduction of inequality”; however, the planned setting is insufficient to debate these countries’ challenges and opportunities, particularly regarding the nuances of AI ethics, due to the infrequent nature of the discussions and the broad range of issues that need to be covered. Multilateral institutions need to establish a dedicated, permanent vehicle for engendering responsible AI — one that provides full representation to Global South countries.
Taking a step forward, AI should no longer be regarded merely as technological advancement. While that advancement may be the desired outcome of any economy, a more philosophical rationale for AI’s development and use should also be considered. Ethics should be the core of responsible LLM development. Ensuring privacy rights, particularly in countries that lack the wherewithal to address responsible AI, is essential.
Policy makers and legislators must incorporate societal values and human rights into emerging AI tools. After all, this is by far the most important regulatory framework of the decade – and perhaps the century. Developed economies and multilateral institutions have a moral obligation to help Global South countries address their unique challenges and to avoid the risks of AI colonization, before it is too late.
