Artificial Intelligence is no longer the exclusive domain of Silicon Valley. In 2025, emerging economies—from India and Brazil to Nigeria, Kenya and South Africa—are taking centre stage in the global AI revolution. This shift is reshaping industries, unlocking financial inclusion, and offering countries a chance to leapfrog over legacy limitations.

Trust and Adoption: A Welcome Contrast

A major survey by the University of Melbourne and KPMG found that three in five people in emerging economies trust AI, compared to only two in five in advanced nations. About 83 % expect it to bring broad societal benefits. Trust is mixed, but optimism is consistently higher in emerging markets largely because the benefits are tangible and immediate. Another data point: in countries like India and Nigeria trust in AI exceeds 75 %, whereas in Australia or Germany it lags below 30 %.

India: From Chatbots to Global Leadership

India’s AI market is projected to hit USD 8 billion by 2025, growing at around 40 % annually since 2020. Already, 23 % of Indian businesses have adopted AI, with 73 % planning new deployments in 2025, significantly ahead of global averages. New national initiatives—such as the IndiaAI Mission and collaboration with OpenAI to launch OpenAI Academy—are scaled to upskill tens of millions and foster inclusion across languages and regions.

Africa: Tackling Local Challenges with Local AI

Although Africa accounts for just 1–1.5% of global AI investment (~USD 2–3 billion in 2025), the region hosts over 2,400 AI start‑ups, with Kenya, Nigeria and South Africa leading the way. Several AI use cases are now established or scaling fast: AI-driven malaria detection in Malawi, predictive pricing apps for Nigerian market stallholders, and AI‑powered chatbots in Nigeria’s telecoms to improve customer experience.
McKinsey estimates generative AI (gen AI) could deliver USD 61–103 billion in additional value across Africa, especially in finance, telecoms, retail and government services. And overall, AI could contribute up to USD 1.5 trillion to USD 2.9 trillion in GDP by 2030.

Brazil and the Middle East: Strategic Advantages and Talent Rises

Brazil is fast becoming attractive for AI hosted data centres due to its clean renewable energy infrastructure—almost 90 % of electricity is renewable. Major tech firms like Amazon and Microsoft are scaling investments there. Brazil also has a strong academic base in AI, and new government centres support research in healthcare, agribusiness and smart cities. Meanwhile, in the Middle East, Saudi Arabia and the UAE have recently entered the global top 20 for AI talent, surpassing traditional players like Italy and Russia—thanks to focused workforce development and significant national investments.

Why Emerging Economies Have an Edge

  1. Leapfrogging potential: Without legacy systems, infrastructure and services can be built ground‑up for AI, enabling faster deployment and innovation.
  2. Global investments pouring in: Microsoft, Amazon, Nvidia, G42 and others are expanding cloud infrastructure across Africa and Asia—driving local capacity building and partnerships
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  3. Education & conferences: Initiatives like Deep Learning Indaba convene thousands of AI researchers across Africa, supporting shared learning, mentorship and growth

Outlook: What’s Next?

By pursuing targeted public‑private collaboration, local language AI, and sector‑specific solutions—in healthcare, agriculture, finance and governance—emerging economies are not just participants—they’re leaders in contexts where AI delivers measurable impact.

We can expect:

  • Rapid convergence of AI infrastructure and compute power in underserved regions.
  • Localized AI models fluent in African, South Asian and Latin American languages.
  • Regulatory frameworks and ethical guardrails building alongside adoption to maintain trust and data security.

Conclusion

The AI boom is no longer just a story of Silicon Valley or Beijing. For emerging economies, it’s a moment to seize global relevance, forge new growth pathways, and shape inclusive innovation—on their own terms.
Trust in AI is higher in emerging markets than in advanced nations. India, Africa, Brazil and the Middle East are rapidly building AI ecosystems. Strategic investments, local relevance and leapfrogging infrastructure give these economies an edge.

Source: Reuters