AI Begins to Take Root in Emerging Market Firms

Why It Matters

AI integration can boost productivity, create new digital services, and enhance global competitiveness for firms in developing economies, driving broader economic growth.

Key Takeaways

• 40% of emerging market firms use AI.
• Digital-first firms adopt AI at 64% rate.
• AI adoption highest in edtech, SaaS, agri-tech, healthtech, fintech.
• Companies founded after 2015 show >50% AI usage.
• Sub‑Saharan Africa has lowest AI adoption among regions.

Pulse Analysis

The International Finance Corporation’s recent survey shines a light on artificial intelligence’s foothold in developing economies, revealing that roughly four in ten firms have already deployed AI solutions. Compared with the rapid rollout seen in the United States and Europe, the emerging‑market landscape remains nascent, but the data underscores a clear upward trajectory. By covering more than 2,200 companies across 85 nations, the study provides a granular view of where AI is taking root and where gaps persist, offering investors and policymakers a benchmark for future progress.

Sectoral dynamics and company age are the primary catalysts of adoption. Digital‑first enterprises—particularly those in education technology, software‑as‑a‑service, agricultural tech, health tech, and fintech—report adoption rates above 60%, leveraging chatbots, predictive analytics, and large‑language models that dovetail with their data‑rich operations. Meanwhile, firms founded after 2015, often described as AI‑native, exhibit more than 50% usage, reflecting business models built around automation and machine learning from inception. This generational shift signals a restructuring of competitive advantage, where newer entrants outpace legacy players in innovation velocity.

Regional disparities highlight the importance of infrastructure, talent, and capital. Sub‑Saharan Africa and the Middle East trail behind Asia and Latin America, pointing to uneven digital ecosystems and limited access to skilled AI professionals. For policymakers, the path forward involves bolstering broadband connectivity, expanding AI‑focused education programs, and creating financing mechanisms that lower entry barriers for smaller firms. Investors can target high‑growth niches—such as AI‑enhanced edtech platforms—that demonstrate both scalability and societal impact, positioning artificial intelligence as a cornerstone of economic development across emerging markets.