Bridging the AI Divide: How Bangladesh Can Build Self-Reliant Generative AI Competencies

While generative AI reshapes industries globally, Bangladesh lags behind due to infrastructure, talent, and investment gaps. This article explores practical strategies to close the gap and foster local AI innovation for a self-sustaining future.

Bangladesh’s AI Paradox: Potential Without Power

Imagine a world where Bangladeshi businesses and industries aren’t playing catch-up but are leading the way in innovation—powered by Generative AI. This isn't a far-fetched dream; it’s already happening across the globe. From massive LLMs like GPT-4 that are revolutionizing industries in the US to language-image models (LIMs) that are enabling new possibilities in China and the Middle East—nations are positioning themselves as leaders in AI. But where does Bangladesh stand in this AI revolution? Sadly, we’re falling behind.

While India is gearing up to generate up to $1.5 trillion through AI-driven transformations, and countries like Saudi Arabia are embedding AI across healthcare, education, and finance, Bangladesh is stuck at the starting line. We continue to rely on expensive foreign cloud platforms, and our AI ecosystem lacks the infrastructure and skilled workforce needed to compete on a global scale.

But it doesn’t have to be this way. This article will show how Bangladesh can seize the enormous potential of generative AI and build a future where we’re not just catching up, but leading.

The High Cost of Being Left Behind in Generative AI

Let’s face it—Bangladesh is not on the global map when it comes to cutting-edge AI development. While the world is racing ahead with generative AI models like GPT-4, LIMs, and other large-scale AI applications, we’re still trying to get a foothold. This technological lag isn’t just holding us back; it’s costing us dearly.

Across industries worldwide, businesses are using AI to automate, innovate, and thrive. From creating fully personalized learning experiences to revolutionizing customer service with AI-driven chatbots, generative AI is transforming how things get done. For instance, in China and the US, businesses are deploying advanced AI models to power entire sectors—from finance and healthcare to entertainment. Even Saudi Arabia is making strides by embedding AI across public services.

But for Bangladesh, reliance on foreign platforms is expensive, unsustainable, and limits our ability to innovate. Data from 2024 shows that Bangladesh's startups are struggling to access affordable computing power, with foreign cloud services marking up costs by up to 600%. Our infrastructure can’t keep up, and the 42% government tax on these services adds salt to the wound (BDPreneurs).

If we don’t act now, the consequences will be harsh. Bangladesh will not just miss out on the $17 trillion global AI opportunity by 2030 (LightCastle Partners)

—we’ll lose our competitive edge in sectors like ready-made garments (RMG), healthcare, and agriculture. Can we really afford that?

Building Local Cloud Infrastructure: The Key to Affordable AI

Let’s be real—Bangladesh cannot continue to rely on foreign cloud services like AWS and Google Cloud if we want to be serious players in the generative AI space. Sure, these platforms offer immense power, but the costs are crippling, especially for startups and small businesses. On top of high rental costs, we’re hit with government taxes that drive prices up by 42%(BDPreneurs) . This dependency not only limits innovation but also drains the potential for long-term growth.

To break free from this dependency, Bangladesh must build its own local cloud infrastructure. This is the foundation for affordable AI, making it accessible to startups, enterprises, and even the government. The benefits go beyond just cutting costs. Local cloud infrastructures can be optimized for energy efficiency and tailored to meet the unique needs of our industries, whether it’s agriculture, healthcare, or garment manufacturing.

Take India, for example. By investing in local data centers, they’ve made AI far more accessible to their businesses, enabling sectors like financial services and education to thrive on home-grown infrastructure(BDPreneurs , The Daily Star) . Bangladesh has the potential to do the same.

By building our own cloud infrastructures, we can:

• Reduce Long-Term Costs: The initial investment will pay off in lower operational expenses for companies across the board.
• Create Jobs: Data centers need manpower—this means new job opportunities and the growth of a skilled workforce.
• Promote Innovation: Local businesses will have affordable access to the resources they need to experiment and innovate.

The time to act is now. We can no longer afford to sit on the sidelines while the rest of the world moves forward.

Scaling Down to Scale Up: Leveraging Smaller AI Models for Local Needs

When we think about AI, we often imagine large-scale models like GPT-4 or Google's massive AI frameworks. But here’s the thing—Bangladesh doesn’t need to compete with these giants to make generative AI work for us. Instead of focusing on massive, resource-heavy AI models, we can harness smaller, more efficient ones that are tailored specifically to our local needs.

Countries like India and Indonesia have already shown that you don’t need billion-dollar infrastructure to make an impact. By using techniques like model distillation and pruning, smaller AI models can be just as powerful when applied to niche areas. For Bangladesh, this means focusing on localized solutions, whether it’s improving agricultural practices, enhancing healthcare diagnostics, or transforming our financial sector with AI-driven tools (McKinsey & Company , BDPreneurs) .

Take agriculture, for instance. AI models fine-tuned to local crops and climate conditions could help farmers predict weather patterns, optimize irrigation, and improve crop yields. In healthcare, smaller AI models can assist in disease detection and patient management, cutting costs while increasing accuracy. The point is, Bangladesh doesn’t need to compete globally in terms of scale—we need to innovate locally and specialize in areas that will have the most impact on our society.

Specialization also means cost efficiency. Instead of draining resources on trying to build all-encompassing AI solutions, we can focus on more targeted models that don’t require as much computing power or data. This strategy allows Bangladesh to scale up without the need for massive infrastructure investments.

Empowering Local Talent: Bridging the AI Skills Gap

If Bangladesh is to thrive in the generative AI revolution, we need to look beyond infrastructure and technology—we need to empower our people. Right now, Bangladesh faces a significant skills gap in AI, particularly in specialized areas like machine learning, large language models (LLMs), and AI-driven applications. Without a skilled workforce, even the best AI tools and infrastructure won’t get us far.

The global demand for AI talent is skyrocketing, and Bangladesh is struggling to keep pace. India, for example, has invested heavily in AI education and training, producing a robust talent pool that’s helping drive their economy forward. We need to take similar action if we want to stay relevant.

To bridge this gap, we need to focus on three key areas:

1. Education and Training Programs: Bangladesh’s universities and technical institutes must offer courses specifically designed for AI, machine learning, and data science. This will ensure that our workforce is equipped with the skills needed to build and manage AI systems.
2. Vocational Training for Specialized Roles: Not every AI-related role requires a PhD. Vocational training programs can prepare people for specialized roles such as data annotation, model tuning, and AI ethics oversight. These roles are critical to the AI lifecycle and will help expand job opportunities.
3. Fostering a Community of AI Innovators: Hackathons, workshops, and AI-focused meetups should be encouraged to create a vibrant community of AI researchers and developers. This will not only boost collaboration but also encourage innovation at the grassroots level.

With the right focus on training and talent development, Bangladesh can reduce its reliance on foreign expertise and become a competitive player in AI. By investing in people, we invest in the future.

Encouraging Innovation and Risk-Taking: Fueling a Bold AI Ecosystem

In Bangladesh, the reluctance to take risks—especially with new technologies like AI—often holds businesses back. Many leaders and enterprises are hesitant to invest in AI-driven innovations, fearing high costs or uncertain outcomes. But here’s the reality: staying on the sidelines is far riskier than taking bold steps forward. If we don’t encourage innovation and calculated risk-taking, we’ll continue to fall further behind while other nations leap ahead.

AI innovation requires a shift in mindset. Around the world, businesses and governments are partnering to foster environments where AI startups thrive. Countries like the UAE and Singapore are pushing boundaries by offering government-backed grants, incubators, and tax incentives to fuel the AI ecosystem(The Daily Star , LightCastle Partners ). Bangladesh must do the same if we want to compete on a global stage.

To build a strong AI ecosystem, we must:

1. Offer Government Support: Grants, subsidies, and tax incentives for AI startups and innovators will provide the confidence needed to take risks.
2. Build Corporate Partnerships: Established businesses in Bangladesh should collaborate with AI startups, providing them with resources, mentorship, and investment to accelerate innovation.
3. Encourage AI-Focused Venture Capital: Dedicated funding for AI technology is essential. Without access to capital, even the brightest ideas won’t materialize.

Our goal should be clear: to create a culture where AI entrepreneurship thrives, risks are embraced, and innovation is rewarded. The future belongs to those who dare to lead it.

Bangladesh’s Generative AI Future Is in Our Hands

Bangladesh has all the ingredients to thrive in the AI-driven future—an eager workforce, innovative minds, and a growing startup culture. But if we don’t take bold steps now, we risk falling even further behind the rest of the world. The rise of generative AI, with technologies like LLMs and LIMs, is revolutionizing industries globally. We cannot afford to sit back and watch.

By investing in local AI infrastructure, focusing on smaller, more targeted AI models, empowering our workforce through education, and fostering a culture of innovation and risk-taking, Bangladesh can not only close the gap but also become a leader in affordable, impactful AI solutions tailored to our unique challenges. The global AI opportunity is immense, and Bangladesh is well-positioned to take advantage—if we act swiftly and decisively.

Now is the time for leaders, policymakers, businesses, and innovators to step up. Let’s build a future where Bangladesh isn’t just catching up but leading in the generative AI revolution.