Developing countries need to strengthen national readiness and design targeted policies in order to prepare for a world rapidly being reshaped by artificial intelligence and other frontier technologies.
National competitiveness increasingly depends on science, technology and innovation (STI) and knowledge-intensive services.
Some developing countries exhibit significant potential relative to their income levels; most need to design industrial and innovation policies that account for the role of knowledge-intensive services and the uncertainties surrounding research and development.
It is also critical to consider the diffusion and direction of frontier technologies and their impact on the economy, and to adapt catch-up strategies accordingly.
Developing countries need to quickly respond to the challenges posed by artificial intelligence, implementing policies that align with national development goals and agendas.
It may be more feasible to immediately support the adoption of artificial intelligence for particular sectoral needs, yet developing countries should also formulate long-term strategic plans to steer national artificial intelligence development. Otherwise, as latecomers, they may be left with few options.
Key points
- As value in the global economy shifts toward knowledge-intensive activities, decision-makers need to support the adoption and development of new technologies, as well as the creation, dissemination, and absorption of productive knowledge.
- Without timely and tailored strategies for integrating artificial intelligence into broader industrial and innovation policies that support inclusive and sustainable development, developing countries risk falling behind.
- Successful national artificial intelligence policies combine high-level direction with concrete actions across key sectors; drawing from global examples, countries need to align policies across research and development, data governance, workforce training and digital infrastructure.
- UNCTAD has devised the frontier technologies readiness index, to assess country preparedness for such technologies, and offers an analytical framework, to help countries evaluate strengths and weaknesses in terms of infrastructure, data and skills, according to national capacity for the adoption and development of artificial intelligence.
This policy brief builds on the findings in chapters 3 and 4 of the UNCTAD Technology and Innovation Report 2025: Inclusive Artificial Intelligence for Development.