A new report by the International Monetary Fund (IMF) has highlighted a significant gap in digital infrastructure that hampers the deployment of Artificial Intelligence (AI) technology in Nigeria and other developing countries.
This revelation comes despite Nigeria’s recent efforts, such as unveiling its AI strategy and launching its first Multilingual Large Language Model (LLM) in April.
The IMF’s ‘AI Preparedness Index’ tracks 174 economies based on their digital infrastructure, human capital, labor policies, innovation, integration, and regulation. According to the report, most developing economies, including Nigeria, are lagging in terms of digital infrastructure for AI, making them the least prepared for the technology.
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An interactive map from the Index highlights that most African countries, except Namibia, Botswana, and South Africa, have little preparedness for AI, indicated by a yellow marking, while countries with substantial preparedness are marked in blue.
Global Inequality and AI
The IMF report notes that wealthier economies are better equipped for AI adoption compared to low-income countries, which could exacerbate existing global inequalities.
“Under most scenarios, AI will likely worsen overall inequality, a troubling trend that policymakers can work to prevent. To this end, the dashboard is a response to significant interest from our stakeholders in accessing the index. It is a resource for policymakers, researchers, and the public to better assess AI preparedness and, importantly, to identify the actions and design the policies needed to help ensure that the rapid gains of AI can benefit all,” the IMF stated.
Benefits of AI for Economies
Highlighting the potential benefits of AI for economies, the IMF noted that AI could complement worker skills, enhance productivity, and expand opportunities.
“In advanced economies, for example, some 30% of jobs could benefit from AI integration. Workers who can harness the technology may see pay gains or greater productivity—while those who can’t, may fall behind. Younger workers may find it easier to exploit opportunities, while older workers could struggle to adapt,” the report added.
Policy Directions for Better AI Preparedness
To better prepare for AI, the IMF suggests that emerging markets and developing economies should prioritize investing in digital infrastructure and providing digital training for workers.
For advanced economies, the focus should be on expanding social safety nets, investing in worker training, and prioritizing AI innovation and integration. The IMF emphasized the need for global coordination to strengthen regulation, protect people from potential risks and abuses, and build trust in AI.
Nigeria’s AI Initiatives
In response to the AI preparedness challenges, Nigeria’s Ministry of Communications, Innovation, and Digital Economy recently organized a 4-day co-creation workshop with over 120 AI experts. This workshop culminated in the formulation of the country’s National AI Strategy.
At the end of the workshop, Communications Minister Dr. Bosun Tijani announced the launch of Nigeria’s first Multilingual Large Language Model (LLM). This AI tool was developed through a partnership between Nigerian AI company Awarritech, global tech company DataDotOrg, the National Information Technology Development Agency (NITDA), and the National Centre for AI and Robotics (NCAIR).
Despite these initiatives, the IMF’s report underscores that much more needs to be done. The current lack of digital infrastructure poses a significant barrier to fully leveraging AI’s potential in Nigeria. Policymakers are urged to ramp up efforts to build a robust digital infrastructure and ensure that the workforce is equipped with the necessary digital skills. Only then can Nigeria and other developing countries hope to reap the benefits of AI and mitigate the risks of increasing inequality.
Broader Implications for Africa
The gap in digital infrastructure and AI preparedness is not unique to Nigeria but is a widespread issue across the African continent. Despite various efforts by African governments to tap into the evolution of AI, there remains a significant disparity compared to developed countries. This gap underscores the need for a deeper commitment by African governments to invest in digital infrastructure and human capital.
Against this backdrop, many believe the IMF report serves as a wake-up call for African policymakers to accelerate their efforts in building the necessary infrastructure and skills base to harness the potential of AI. The benefits of AI, such as enhanced productivity, job creation, and economic growth, are substantial, but without the requisite infrastructure, these benefits will remain out of reach for many African countries.
The IMF is now preaching digital infrastructure to you people, next you hear $500M or $1B loan package, and after 5 or 10 years, you are still not feeling the impact of the funded ‘digital infrastructure’, but you already have more debts to service. The playbook is quite predictable, there’s really no sophistication in the gimmick.
What exactly is this fancy phrase called digital infrastructure? You are not going to get that simplified in meaningful ways, but yea, Nigeria needs a digital infrastructure to touch the sky.
Electricity is fundamental, but it’s no longer fashionable or exciting to hammer on it, since there’s no way to tell a new lie about what it is or is not, so it’s now a muted point, but you still have your advisers and their local collaborators yammering on development. The digital infrastructure will be built by who, Nigerians or foreign firms? When you are not part of the infrastructural development that is central to your well-being, you are a mere consumer, irrespective of how the narrative is framed. You are never going to hear whether your education system is relevant to the AI future and its constituents being sold to you, just accept first.
Get electricity and broadband at scale first, then come back.