Nearly 48 per cent of surveyed business leaders believe their governments are still in the early stages of AI readiness. Reuters
Nearly 48 per cent of surveyed business leaders believe their governments are still in the early stages of AI readiness. Reuters
Nearly 48 per cent of surveyed business leaders believe their governments are still in the early stages of AI readiness. Reuters
Nearly 48 per cent of surveyed business leaders believe their governments are still in the early stages of AI readiness. Reuters

One in five businesses in emerging markets 'not ready for AI adoption'


Alkesh Sharma
  • English
  • Arabic

About one fifth of businesses in emerging markets say they are not ready to adopt artificial intelligence due to gaps in infrastructure, talent and resources. This is despite 70 per cent of company executives reporting access to fundamental IT capabilities, including consistent and stable internet connections.

The findings were part of a new report by the UAE-based technology company G42 in collaboration with Economist Impact, which surveyed 700 senior executives from medium to large companies across seven emerging markets: Azerbaijan, Egypt, India, Indonesia, Kazakhstan, Kenya and Turkey.

Almost 81 per cent of respondents described limited or no access to training data, while 84 per cent identified high-capacity computational systems to feed and power AI systems as significant barriers.

Wendy Gonzalez, chief executive of US-based training data company Samasource and a contributor to the report, said components such as cloud computing, graphics processing units and adequate processing capacities are critical drivers for AI implementation, particularly in emerging markets.

Talent paucity threatens long-term growth

The report highlighted a severe shortage of AI talent in emerging markets, with 45 per cent of surveyed businesses citing this as a main obstacle. Companies struggle to find workers with a mix of technical skills, such as data literacy and system programming, and soft skills like critical thinking and communication.

“AI talent is no longer solely about complex mathematics and programming,” said Mark Manantan, director of cybersecurity and critical technology at the Pacific Forum. “Today, softer skills integrated with technical competencies are equally critical.”

Adding to the problem is the 'brain drain' phenomenon. For example, India had 770,000 students leave the country for higher education in 2022, while political and economic instability in Turkey drove 139,530 of its citizens to emigrate in the same year, the largest demographic being people aged 25 to 29.

“Talent is critical,” said Maymee Kurian, group human capital and culture officer at G42. "In a field such as AI, which is highly innovation-driven and evolves at lightning speed, it’s crucial to find the right talent that can keep up with those changes but also bring new perspectives."

Larger firms are more likely to develop custom AI tools to add to customer experience. Reuters
Larger firms are more likely to develop custom AI tools to add to customer experience. Reuters

Uneven AI readiness

The report found disparities in AI readiness between larger and smaller companies.

Larger firms, defined as those with more than 1,000 employees, are better equipped to adopt AI solutions. They are also more likely to develop custom AI tools, with 53 per cent of large companies taking this approach compared to 39 per cent of smaller firms.

These custom tools can drive personalised employee and customer experiences, as well as enhance decision-making. In one example, MakeMyTrip, an Indian travel company, is developing an AI-powered chatbot in partnership with Microsoft to address language barriers for domestic users.

However, while some companies invest in tailored AI solutions, many remain hesitant due to uncertainties around measurable outcomes.

The lack of a clearly defined return on investment for AI solutions is one of the major obstacles identified in the report. Nearly 30 per cent of respondents indicated that unclear return-on-investment metrics hinder their ability to adopt AI technology.

“Developing clear processes and metrics will help companies assess progress and the business value of implementing AI systems,” said Mohit Kapoor, chief technology officer at Mahindra Group.

Despite these challenges, businesses acknowledge the potential benefits of AI. Increased productivity and efficiency were identified by 59 per cent of respondents, while 42 per cent reported improved customer satisfaction and 38 per cent highlighted cost reduction.

Harmonising innovation and regulation

The report underscored the need for governments in emerging markets to take a proactive role in addressing AI readiness. National strategies, such as Rwanda’s AI road map and the IndiaAI initiative, aim to enhance infrastructure and provide AI education in both a formal and informal way.

While businesses are keen to explore AI, regulatory uncertainty in many emerging markets remains a challenge. Nearly 48 per cent of surveyed business leaders believe their governments are still in the early stages of AI readiness and 28 per cent say national policies do not sufficiently support AI technology.

The report calls for balanced regulation that encourages innovation while addressing risks. Bitange Ndemo, Kenya’s ambassador to the European Union, advocated “sandboxes” to foster safe experimentation with AI technology.

Policymakers in emerging markets must focus on strengthening AI readiness through infrastructure investment, enhancing education with both Stem and critical-thinking skills, and crafting robust AI strategies to guide businesses. Despite budget constraints, these markets may adapt more quickly due to minimal legacy infrastructure, the report noted.

Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
What sanctions would be reimposed?

Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:

  • An arms embargo
  • A ban on uranium enrichment and reprocessing
  • A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
  • A targeted global asset freeze and travel ban on Iranian individuals and entities
  • Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Four tips to secure IoT networks

Mohammed Abukhater, vice president at FireEye in the Middle East, said:

- Keep device software up-to-date. Most come with basic operating system, so users should ensure that they always have the latest version

- Besides a strong password, use two-step authentication. There should be a second log-in step like adding a code sent to your mobile number

- Usually smart devices come with many unnecessary features. Users should lock those features that are not required or used frequently

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What is Reform?

Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.

It was founded in 2018 and originally called the Brexit Party.

Many of its members previously belonged to UKIP or the mainstream Conservatives.

After Brexit took place, the party focused on the reformation of British democracy.

Former Tory deputy chairman Lee Anderson became its first MP after defecting in March 2024.

The party gained support from Elon Musk, and had hoped the tech billionaire would make a £100m donation. However, Mr Musk changed his mind and called for Mr Farage to step down as leader in a row involving the US tycoon's support for far-right figurehead Tommy Robinson who is in prison for contempt of court.

What the law says

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Islamophobia definition

A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

UAE currency: the story behind the money in your pockets

Graduated from the American University of Sharjah

She is the eldest of three brothers and two sisters

Has helped solve 15 cases of electric shocks

Enjoys travelling, reading and horse riding

 

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Updated: January 21, 2025, 6:30 PM