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Entrepreneurial Lifestyle: Navigating the AI Frontier. Are Emerging Economy Countries Ready?

Recently AI has been the main dish preferred on every table, not too long ago we all were involved in IT transformation, evolution is and always will be an essential ingredient of daily human life. Dear friends, allow me to share my experience about all this amazing and magical transformation around the world from the perspective of a third world or hopefully from an emerging economy country; México.


Artificial Intelligence (AI) stands at the forefront of technological innovation, promising transformative changes across industries and societies worldwide. As developed nations surge ahead in AI research and implementation, the spotlight turns towards emerging economies and third-world countries. Are they prepared to harness the potential of AI, or do they face insurmountable challenges?



 AI Frontier Emerging Economy Countries
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Firsthand; maybe and only maybe the point view of an entrepreneur and citizen living and developing a business in this kind of economy, can be a little different from those that you can watch on the news. 


I remember reading the news about the growth of the Brazilian emerging economy, during the first period of Lula da Silva. I was amazed and happy for my dear friend Renato Capecce who returned to his country to build his own business after being the general director of a successful transnational enterprise called Sterling Commerce located in Santa Fe, the Mexico City business headquarters location. Then I called him to ask about how this great government period was helping to develop his business. What he said was disconcerting; I am really worried about what is happening in my country, what the news is exposing is not the real scenario, in fact, I am looking for a way to migrate to Portugal and I am worried about the families that depend on me and my business.


My friend is one of those real leaders, he didn’t migrate due to his accountability to his employees.


“What is growth for if not to help ordinary people to thrive?” Winnie Byanyima

Well, allow me to say that something similar is happening in Mexico with the actual government. Sometimes the news is not the truth.  And when the news is the truth, somebody is taking risks. So, how these countries, emerging economies, and the third world will deal with AI, if IT has been implemented by a few, the most advanced and powerful, like bank corporations or transnationals only? Will AI shut up or not the social and economic disparity?



 AI Frontier Emerging Economy Countries
Design by AI


Third World vs. Emerging Economy Countries and AI Frontier


The term Third World originated during the Cold War era to refer to countries that were not aligned with either the capitalist West (First World) or the communist bloc (Second World). Over time, its connotation evolved to encompass nations with lower levels of economic development, often characterized by corruption, poverty, limited infrastructure, and socio-economic disparities.

 

On the other hand, "Emerging Economy Countries" (EECs) are nations experiencing rapid industrialization, economic growth, and technological advancements. These countries exhibit rising levels of income per capita, expanding middle classes, and increasing integration into the global economy. While they may still face developmental challenges, EECs are on a trajectory towards becoming major players in the global marketplace.


If you read my blog post titled “The Cancer of Corruption. A Roadblock to Economic Progress!” you will notice how devastating is the impact of corruption on the country’s economic growth, where these two worlds are mainly targeted.


“The time to repair the roof is when the sun is shining." John F Kennedy 

Key Differences between emerging economy and third world countries


While emerging economy countries may not possess the resources and infrastructure of their developed counterparts, they do exhibit certain advantages and unique opportunities in adopting AI technologies, very probably we can´t say the same about third-world countries, nor about being in between like Mexico. Even one Mexico advantage like no other is its geographical location.

So, one of the key assets of emerging economies lies in their demographic dividend. With large populations and a burgeoning youth demographic, these countries have a vast pool of talent that can be harnessed to drive AI innovation and development. Moreover, the entrepreneurial spirit prevalent in many emerging economies fosters a conducive environment for startups and tech-driven initiatives, laying the groundwork for AI adoption, a very good example to follow: India.



 

AI, Economic Development & Access to Global Markets


Perhaps the most significant distinction lies in the stage of economic development. Third World countries typically have lower Gross Domestic Product (GDP) per capita, higher poverty and corruption rates, and underdeveloped infrastructure compared to EECs. Emerging economies, on the other hand, are characterized by robust economic growth, expanding industries, and increasing levels of foreign investment.


Emerging Economy Countries have made significant strides in integrating into the global economy through trade agreements, foreign direct investment, and participation in international organizations. They play increasingly influential roles in global supply chains and have become attractive destinations for multinational corporations seeking growth opportunities. In contrast, Third World countries may face barriers to accessing global markets due to factors such as trade imbalances, corruption, lack of competitiveness, and limited export capacity.


Emerging Economy Countries; Infrastructure and Technology


Emerging Economy Countries often boast more advanced infrastructure, including modern transportation networks, telecommunications systems, and energy grids, compared to Third World nations. This infrastructure serves as a catalyst for economic development and facilitates the adoption of advanced technologies, including digital innovations and artificial intelligence.


The way the world is going, it´s technology driven. And it isn´t just driven by the old power, it´s driven by the far east new emerging economies.

The Third and Emerging Economy Countries Social Indicators Challenges


However, significant challenges remain. Infrastructure deficits, including limited access to high-speed internet and outdated telecommunications networks, pose barriers to the widespread deployment of AI technologies. Additionally, as I mentioned before, the digital era divide, exacerbates disparities within these countries, with rural and marginalized communities often left behind in the digital revolution. An example could be the Indigenous populations which themselves prefer to protect their cultural heritage following apart from this growing and evolutive world. How to include them without destroying them?  Or how to give them the right to select without leaving them technologically marginalized? Would that be possible? I will launch a magnificent project named Gold by Mirrors a delicatessen insight, into the history, stories, recipes, and cultural heritage of Mexico´s Cuisine, a unique jewel for collectors. And I will share some articles in the newsletter with the same name on LinkedIn. Here, my friends, doing this research, I noticed the gap between cultural heritage and AI. Not because AI can´t be here implemented, but should it be? And how?


Yes! Emerging economies are increasingly recognizing the importance of building indigenous AI capabilities. Initiatives such as AI research centers, technology parks, and skill development programs are emerging across these countries, aimed at nurturing local talent and fostering innovation ecosystems. By investing in education and skills training, indigenous groups can empower themselves to participate in the AI-driven economy and share inclusive growth. This sounds great from our perspective, but is it from the indigenous perspective?


While both groups may grapple with social challenges such as poverty, inequality, and inadequate access to healthcare and education, Emerging Economy Countries often exhibit better social indicators compared to Third World nations. EECs typically invest more in social welfare programs, healthcare infrastructure, and education systems, leading to improvements in human development outcomes over time.


Furthermore, the affordability of AI technologies presents a formidable obstacle. Cutting-edge AI solutions are often prohibitively expensive, making them inaccessible to governments, businesses, and individuals in emerging economies, even much more for the third world. Bridging this affordability gap requires innovative financing mechanisms, public-private partnerships, and a focus on developing cost-effective, scalable solutions tailored to local needs.


Despite these challenges, emerging economy countries are making strides in AI adoption and innovation. In sectors such as agriculture, eco-houses, healthcare, finance, and manufacturing, AI applications are being leveraged to address pressing challenges and drive sustainable development. For example, AI-powered predictive analytics enable farmers to optimize crop yields and mitigate the impact of climate change on agricultural productivity.

 

Implications for Policy and Development in the Third World and Emerging Economy Countries


However, alongside the opportunities, emerging economies must grapple with ethical considerations and regulatory challenges associated with AI deployment. Issues such as data privacy, algorithmic bias, and job displacement require careful attention to ensure that AI technologies are deployed responsibly and equitably.


Understanding the nuances between Third World and Emerging Economy Countries is essential for designing effective policies and development strategies tailored to the specific needs of each group. While Third World countries may require targeted interventions to address basic needs such as food security, access to clean water, and healthcare, Emerging Economy Countries may benefit from policies aimed at fostering innovation, entrepreneurship, and sustainable economic growth.


Moreover, recognizing the diversity within each category is crucial. Emerging Economy Countries encompass a wide range of nations with varying levels of development, cultural contexts, and governance structures. Similarly, Third World countries comprise diverse regions with unique challenges and opportunities. A one-size-fits-all approach is unlikely to be effective in addressing the complex socio-economic dynamics at play.


Then, how quickly can these two worlds adapt and pivot in the insight age as GenAI insights shift our growth strategy faster than ever before? How capable are we to make those pivots?  Are our operating model, culture, data, systems, and tools ready? Are we ready to make the inevitable pivot that is going to take place in this next era? Mexico for example faces deep problems with inefficient management administration in governmental institutions where IT has been barely or hasn´t been implemented at all, putting aside the corruption that predominantly invades the culture, which leaves the country unprepared to receive AI in this sector.

 

Conclusion


While emerging economy countries face hurdles in embracing AI frotier, they also possess significant potential for leveraging these technologies to drive socio-economic progress. By addressing infrastructure deficits, promoting affordability, and fostering local innovation ecosystems, these nations can position themselves to reap the benefits of the AI revolution. With concerted efforts from governments, businesses, academia, and civil society, emerging economies can navigate the AI frontier and emerge as leaders in the global digital economy. However, on the other side of the equation, the third world faces challenges in embracing AI.



 AI Frontier Emerging Economy Countries


My dear friends, to be honest, we have nothing about this topic in The School of Your Pass for a Better You, but we have more topics like Mastering Mexican Cuisine, you won´t believe it but I am an excellent cook, so if you want to know more about this Mexico's Cuisine from the pre-Columbian to the Conquest of The Aztec Empire and today or dive into more insights and visit The School of Your Pass for a Better You, you can register to get into the waiting list when doors open again.


If you want to read more about these entrepreneurial lifestyle insights, visit my Blog The Alpha Blog, or listen to my Podcast "Your Pass for a Better You! Wish is coming soon.


Strength and honor.


See you in the arena...

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