To translate AI into real business value, it’s crucial that entrepreneurs in developing countries get the support they need in terms of skills, finance and enabling ecosystems.
© Shutterstock/Amorn Suriyan | Engineers work to combine programmable logic controllers and artificial intelligence for industrial automation.
Artificial intelligence (AI) is increasingly shaping how entrepreneurs in developing countries start, manage and grow their businesses, a new publication from UN Trade and Development (UNCTAD) highlights.
Micro-, small- and medium-sized enterprises (MSMEs) and start-ups have embarked on using AI-powered tools across a wide range of activities, from marketing and customer service to logistics, finance and product design.
Large language models are emerging as foundational building blocks that allow smaller firms to adopt AI quickly and at a relatively low cost.
But AI adoption remains uneven, as many entrepreneurs reported a limited understanding of the business value of AI – what problems it can solve, how it fits into long-term business strategy and how to implement it step by step.
A lack of managerial understanding and technical talent slows AI implementation, especially for smaller firms with limited resources.
“AI can be a powerful tool for entrepreneurs, but its benefits are not automatic,” said Arlette Verploegh Chabot, who leads UNCTAD work on entrepreneurship development.
“Supportive ecosystems, the right skills and clear rules are essential to help entrepreneurs understand where AI adds value and how to integrate it into their businesses in a meaningful way.”
Creating the right conditions
Clear and predictable governance plays a central role in encouraging entrepreneurs to invest in AI. Coherent rules across sectors can reduce uncertainty, while sector-specific approaches aligned with national development plans help ensure that regulations remain practical and innovation-friendly.
“AI regulation is not about slowing down progress,” said Amandeep Singh Gill, a top UN official overseeing cooperation around digital and emerging technologies.
‘It is about making sure innovation happens responsibly, whereby clear rules help build trust and create a fair playing field,” Mr Singh said in an interview for the UNCTAD publication.
Lowering barriers to adoption
Access to affordable technology and finance is another key factor. Open-source platforms and collaborative initiatives are emerging as powerful solutions, enabling entrepreneurs to test and deploy AI without heavy upfront investment.
Natasha Crampton, Chief Responsible AI Officer at Microsoft, emphasized that lowering AI barriers for entrepreneurs requires a combination of accessible infrastructure, skills development and trusted governance, noting that “true AI adoption” depends on supportive ecosystems that allow entrepreneurs to learn, experiment and grow.
Hiroaki Kitano, Chief Technology Fellow of Sony Group Corporation, talked about a phased approach to helping firms adopt AI while managing risks and building capabilities.
This means starting with off-the-shelf tools, before collaborating with start-ups and partners to access specialized expertise, then gradually building in-house capabilities.
Building skills for the AI era
Entrepreneurs and experts across UNCTAD’s entrepreneurship network consistently point to skills as the decisive factor in AI adoption. For businesses, this requires both strategic understanding of where AI adds value and practical capabilities to work effectively with new tools.
This is where targeted, hands-on support from UNCTAD’s Empretec business development centres are making a difference.
In several countries, these centres help entrepreneurs identify concrete AI use cases for their businesses and build the skills to apply them – through training, mentoring and bootcamps that combine core business planning with the practical use of accessible AI tools.
Armed with these insights, the UNCTAD report put forward recommendations for an Entrepreneurship Policy Framework for AI adoption.
They seek to equip governments with policy options to create enabling settings, where AI can flourish as a practical tool for entrepreneurs across developing countries.