Emerging Markets Urged to Harness AI for Economic Leapfrogging
First Deputy Governor of the Bank of Ghana, Dr. Maxwell Opoku-Afari, has called on emerging economies to embrace artificial intelligence (AI) as a catalyst for productivity and growth.
Speaking at the 2nd Emerging Countries International Conference on Business, Finance, and Economics hosted by the University of Ghana Business School, he argued that AI could provide an unprecedented opportunity to accelerate development if accompanied by targeted policy reforms and capacity building.
Dr. Opoku-Afari highlighted projections that AI could contribute over $15 trillion to the global economy by 2030, with advanced economies capturing the bulk of these gains. However, he stressed that emerging markets could bypass traditional development models through strategic AI adoption.
“The future belongs to those who prepare for it today. For emerging markets, this means prioritizing infrastructure, skills development, and robust regulatory frameworks,” he said.
AI Preparedness: Tailored Approaches for Emerging Economies
Drawing on a novel AI preparedness index, Dr. Opoku-Afari outlined differentiated strategies for countries at various stages of development:
- Advanced and Emerging Market Economies: Focus on innovation and integrating AI into core systems while ensuring ethical governance.
- Less Prepared Economies: Invest heavily in foundational digital infrastructure and workforce upskilling.
- Inclusive Policies: Across all economies, ensure safety nets and reskilling programs are in place to support workers displaced by automation.
He emphasized that education systems, particularly university curricula, must adapt rapidly to prepare the next generation for AI-driven economies.
Strategic Priorities to Unlock AI Potential
Dr. Opoku-Afari outlined five key policy imperatives for harnessing AI’s potential:
- Digital Infrastructure: Bolster broadband and technological capacity to enable AI innovation.
- Human Capital Development: Equip labor forces with digital and analytical skills to thrive in an AI-driven environment.
- Local Innovation: Nurture domestic tech ecosystems to solve region-specific challenges.
- Regulation: Craft legal frameworks to ensure ethical AI use and mitigate job losses from automation.
- Collaborative Networks: Strengthen partnerships between governments, academia, and the private sector to accelerate knowledge transfer and innovation.
AI in Action: Lessons from Ghana
Offering a glimpse into Ghana’s approach, Dr. Opoku-Afari shared insights into how AI has been integrated into the central bank’s operations. At the Bank of Ghana, AI-driven algorithms are used to gather real-time price data for improved inflation forecasting.
This innovation has drawn interest from other central banks in the region, seeking technical assistance to adopt similar practices.
He also pointed to AI’s role in transforming access to finance, with digital banking platforms now using AI-enabled credit scoring to ease lending to small and medium-sized enterprises (SMEs).
This, he noted, has bolstered entrepreneurial activity and job creation while deepening financial inclusion in Ghana.
An Opportunity Too Big to Ignore
While the risks of automation displacing jobs remain a concern, Dr. Opoku-Afari argued that the benefits of AI, particularly for emerging markets, outweigh the challenges.
“AI offers a unique intersection between productivity and growth. By laying the groundwork now, emerging economies can position themselves to reap transformative rewards,” he concluded.
