This paper
examines the potential impact of Artificial Intelligence (AI) on developing
countries. The study focuses on the impact of AI on employment, market
structure, and international trade in these countries. The analysis finds that
AI has the potential to significantly impact the labor market in developing
countries, leading to job displacement, wage stagnation, and the creation of
new job opportunities. It also finds that AI has the potential to alter market
structures and disrupt international trade, with significant implications for
the economies of developing countries. On, the one hand, AI and robotics can
erode the comparative advantage of the developing countries in producing
labor-intensive goods and on the other hand, AI presents the opportunity to
trade hitherto non-tradable services like telemedicine, digitalization etc.
Finally, the study suggests that governments in developing countries must take
proactive measures to manage the effects of AI, including investing in
education and training programs, promoting innovation, and establishing legal
and regulatory frameworks to protect workers and consumers.
Citation:
Monika., Narayanan Gopalakrishnan, B., & Iyenghar, P. (2023). Artificial intelligence and the impact on developing countries. ASERC Journal of Socio-Economic Studies, 6(1), 3-14.