Looking Ahead from Davos 2025: AI Readiness in Emerging Markets and Key Insights
As one of the experts in the report, I will discuss and summarize the insights offered by the daily reports on the AI revolution in emerging markets.
At the World Economic Forum (WEF) 2025 in Davos, decision-makers, academics, entrepreneurs, and experts from around the globe gathered to discuss some of today’s most pressing issues. One highlight was a comprehensive study examining the level of readiness and potential of emerging markets — commonly referred to in the report as “emerging markets” — in the field of artificial intelligence (AI). Titled “Ready, set, AI: AI readiness in emerging markets,” this report was produced by Economist Impact with the support of G42, focusing on infrastructure, human capital, strategy, and policy as critical dimensions for AI adoption.
I had the privilege of contributing as one of the experts to this report.
In this blog post, I will share details about the study’s research methodology, key findings, and the topics explored in each chapter. I will also discuss why “emerging markets” are so crucial, the common (and sometimes differing) challenges these countries face, the investment opportunities, and future forecasts.
Overview of the Report and Methodology
One aspect that sets this report apart is its comprehensive methodological approach. The Economist Impact team conducted surveys with 700 senior executives, alongside in-depth interviews and a literature review. The participating companies operate in Azerbaijan, Egypt, India, Indonesia, Kazakhstan, Kenya, and Turkey — countries often highlighted for their strong capacity to grow and attract investors. Directors and senior managers from medium-sized and large companies participated, offering valuable insights into AI strategy and implementation.
In-depth interviews are another feature that enhances the quality of the report. Economist Impact researchers spoke with well-known academics, founders and senior executives of tech companies, government representatives, and experts from civil society organizations, enriching the findings. As a result, the report goes beyond pure statistical data, reflecting real-life experiences and field observations.
What Are Emerging Markets and Why Are They Important?
In English, “emerging markets” typically denote economies that have not yet reached full-fledged “developed country” status but exhibit high growth and investment potential. While widely known examples include the BRICS group — Brazil, Russia, India, China, and South Africa — this list has expanded significantly. The seven countries spotlighted in the report (Azerbaijan, Egypt, India, Indonesia, Kazakhstan, Kenya, and Tütkiye) are dynamic, fast-growing hubs with substantial market opportunities.
These markets are poised to become key arenas for AI applications soon. Large-scale data, digital transformation projects, and a young population all combine to accelerate AI adoption. At the same time, they face challenges such as insufficient infrastructure investments, talent shortages, or regulatory uncertainties.
Five Chapters of the Report: Summary and Key Themes
The report is structured around five main chapters, each examining a different aspect of AI adoption in emerging markets.
1. “Roadblocks Ahead”
This chapter delves into obstacles related to AI infrastructure. Infrastructure deficiencies (e.g., high-capacity computing resources, fast internet connectivity, data centers) and access to high-quality data emerge as primary concerns. Even if basic internet connectivity is available, many businesses in emerging markets lack the capacity for large-scale data processing. Consequently, several firms seek public-private partnerships for financial or technological support. The report cites government initiatives in Kazakhstan and Indonesia as examples of how these gaps might be bridged.
2. “Assembling the AI Team”
Chapter 2 focuses on the importance of human capital in AI. In addition to technical skills (e.g., software engineering, data science, machine learning), “soft” skills like critical thinking, creativity, and communication are gaining prominence. The report also discusses how emerging markets have long grappled with brain drain, as highly qualified professionals often migrate to countries or companies offering better compensation and ecosystems. Despite this, examples like Microsoft’s “AI TEACH” initiative in Indonesia or Google’s “Hustle Academy” in Kenya show how public-private partnerships can help fill the talent gap.
3. “Playing the Long Game”
This section tackles strategy and planning. Because AI evolves so quickly, businesses need to adopt flexible, long-term thinking. The report underscores the importance of clarifying management roles (e.g., CTO, CIO, CDO, CAIO) and establishing in-house policies to navigate uncertain regulatory environments. Many emerging markets lack a well-defined national AI policy, so companies often set rules within unclear legal frameworks. The text highlights the European Union’s 2024 AI Act and explores how different markets can strike a balance that fits their needs. Kenya and India, for instance, employ “sandbox” approaches that encourage innovation without stifling it through heavy regulation.
4. “Progress Update”
Chapter 4 examines how businesses measure return on investment (ROI) for AI projects and the difficulties they face. While emerging markets tend to seek quick results even in long-term investment plans, major tech firms like Alphabet, Amazon, Meta, and Microsoft admit that seeing returns on AI investments can take years. The report insists this should not discourage companies in emerging markets, emphasizing net revenue, cost reduction, customer satisfaction, and risk mitigation metrics. This chapter also references companies like MakeMyTrip (India), which invests in AI to enhance customer experience, providing practical examples that may guide others.
5. “What Next?”
The final chapter outlines future forecasts and recommendations, highlighting two pillars: technical capacity (infrastructure, data, computing) and cultural/adaptive factors (experimentation, learning, acceptance of trial and error). The report advises companies to avoid a “use AI anywhere and everywhere” approach, instead aligning AI projects with specific needs and available data. Encouraging a corporate culture that fosters curiosity and experimentation is also crucial.
Meanwhile, the role of government is central: they must bolster regulatory frameworks while prioritizing skills training for public-sector personnel and enhancing institutional capacity. The report cites a UK study indicating that AI tools could automate 84% of repetitive administrative tasks across 200 government services. Countries like Türkiye or Azerbaijan might implement similar strategies, leading to more efficient public services.
Why Should You Read This Report?
This report serves as a comprehensive guide if you operate in emerging markets — whether in the private sector, civil society, or government. It covers critical areas, including infrastructure, data management, talent development, strategy, policymaking, and expectations for return on investment. Each chapter features real-life case studies, interviews, and actionable insights.
Moreover, global tech giants (Microsoft, Google, etc.) and local companies (such as MakeMyTrip, Telkom Indonesia) share their success stories, illustrating how AI initiatives can be implemented on the ground. These examples show that AI technologies, sometimes perceived as distant or complex, can be accessible and scalable with the right approach.
Anyone conducting business in emerging markets or planning investments can adapt the report’s insights to their strategies, business plans, or public policies. The challenges and solutions detailed in the five chapters will guide you in considering how these lessons apply to your unique context.
My Contribution and Acknowledgments
I am proud to be one of the contributing experts to this report. The Economist Impact team brought together voices from multiple disciplines and regions to provide both a broad perspective and in-depth analysis. I would like to extend my gratitude to the The Economist Impact team and everyone involved in this project. With the support of G42, this report has produced a comprehensive roadmap of the AI ecosystem in emerging markets.
The report was published at the “AI House” in Davos 2025 and the proceedings of “The route toAI readiness in emerging markets: enabling innovation, adoption and impact”.
Conclusion and Takeaways from Davos
Davos 2025 demonstrated that AI is not merely a key topic for developed economies; it’s also a critical pivot point for emerging markets. The report illustrates how the right strategies and collaborations can unlock substantial value through AI initiatives despite challenges like inadequate infrastructure or talent shortages. With joint efforts from companies, government agencies, and civil society, all can share the benefits of AI’s transformative power.
Emerging markets may gain a competitive advantage in AI precisely because they have fewer entrenched structures and a young, dynamic workforce. Whether it’s promoting long-term thinking or embedding a trial-and-error culture within organizations — upskilling the workforce, creating national strategies, and establishing balanced regulatory frameworks are decisions that must be made now.
If you’re looking to digitally transform your company using AI, manage national or international projects, or consider investing in this field, I strongly recommend reviewing the full report. It comprehensively outlines potential hurdles and practical examples of how to overcome them, providing a roadmap for those aiming to keep pace with rapid technological change and lead innovation.
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