How Nigeria and Other Developing Nations Can Bridge the AI Gap Considering the Future of Global Productivity and Economic Growth
Dr. Najib Dankadai
Digital Transformation Strategist | Product Architect | Automation and Optimization Engineer | Exponential Technology Optimist
A. Introduction
The foundation of economic growth in the current world order is largely based on a simple equation: the average productivity per person times the number of people. Historically, nations with large populations, such as China and India, have leveraged this model to achieve significant economic expansion by focusing on increasing productivity. However, with the emergence of AI-powered robots and autonomous systems, this equation is about to change dramatically. In the future where AI does most of the work, the number of productive entities (AI systems) could replace human labor as the key driver of economic output.
Therefore, countries with highly advanced AI infrastructure and a large number of AI-powered robots will experience a productivity explosion. This creates a new challenge for countries like mine, Nigeria which lags in AI development compared the other countries like the USA and China which are really bullish on AI. In this article, I will explore how these nations lagging behind can catch up and ensure they remain economically relevant in a world increasingly driven by AI.
B. The Rise of AI and Robotics Can Push the Cost of Production Toward Zero
AI and robotics can revolutionize industries by performing tasks that were once the sole domain of humans in the future faster than we think. From manufacturing to healthcare, autonomous systems can enhance efficiency and reduce the costs associated with human labor, errors, and resource consumption.
With general-purpose humanoid robots and autonomous vehicles already in development, these AI systems are set to replace a wide range of jobs, from factory work and transportation to complex service industries. As their capabilities grow, the cost of producing goods and providing services will approach zero. For countries with well-developed AI systems, this represents an unprecedented economic opportunity, as they will be able to produce vast amounts of goods and services at negligible cost.
C. The New Economy with AI as the Primary Workforce
In a world where AI systems perform the bulk of work, the size of a nation's economy will no longer depend on its human workforce. Instead, it will be defined by the number and sophistication of AI-powered robots and autonomous systems it can deploy. The more advanced the AI, the greater its potential for economic growth. Nations that succeed in developing AI will become global economic superpowers, while those that lag will risk economic marginalization.
This raises important questions for nations like mine Nigeria, which are still in the early stages of AI adoption. What will happen to the economies of these nations if AI determines future economic success? How can countries with less advanced AI infrastructure position themselves to benefit from the coming wave of automation?
D. The AI Divide Can Cause Economic Inequality in the Age of Automation
As AI advances, there is a risk that the world will experience a growing economic divide between nations that are AI leaders and those that lag. Countries with robust AI ecosystems will experience rapid growth, while countries without the resources or infrastructure to develop and deploy AI at scale may fall behind.
For Nigeria, this presents a critical challenge. Without significant investment in AI development, infrastructure, and education, the country risks being left behind in the global economy of the future. The benefits of AI-driven economic growth could become concentrated in a few advanced economies, exacerbating global economic inequality.
E. How Nigeria and Other Developing Nations Can Adapt to Bridge the AI Gap
i. Investment in AI Research and Development (R&D):
Developing nations must prioritize investment in AI research and development to build a foundation for AI-powered industries. Governments should incentivize private and public sector innovation, partner with leading AI companies and Universities, and create new research institutions to focus on AI development. Forming partnerships with global AI leaders and establishing enough state-of-the-art AI research centers will be key for Nigeria.
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ii. Building AI Infrastructure:
A critical step toward leveraging AI is the development of digital and data infrastructure. Countries like Nigeria must invest in robust broadband networks, data centers, and cloud computing platforms to support AI applications. In addition, creating a regulatory environment that fosters innovation and facilitates the deployment of AI systems is essential.
iii. Reskilling the Workforce:
With AI taking over many manual jobs, human workers will need to transition to roles that focus on managing, programming, and enhancing AI systems. Nigeria must invest in reskilling its workforce, particularly in STEM (Science, Technology, Engineering, and Mathematics) fields, to prepare for the new AI-driven economy. This will require government programs, public-private partnerships, and investment in educational initiatives focused on AI literacy.
iv. Government Policy and Strategic Planning:
Governments must play a proactive role in guiding the transition to an AI-driven economy. This includes creating a robust long-term strategic plan for AI adoption and addressing ethical considerations, such as job displacement and income inequality. Policymakers must also ensure that the benefits of AI are distributed equitably across society and that AI is used to enhance rather than displace human capabilities.
v. Forming Global AI Alliances:
To avoid being left behind, developing nations like Nigeria should seek to form alliances with global AI leaders. By participating in international AI initiatives, Nigeria can gain access to advanced technologies, share knowledge, and collaborate on global AI solutions that address local challenges.
F. What Happens to Economies Lagging in AI?
For nations that fail to adopt and integrate AI, the consequences could be severe. As AI becomes the dominant driver of economic productivity, countries without access to advanced AI systems will struggle to compete in the global economy. Their industries will face lower productivity, higher production costs, and diminishing global relevance.
Moreover, nations that lag in AI development will become reliant on AI-driven economies for goods and services, further exacerbating economic dependencies. These nations could experience higher unemployment as AI displaces traditional jobs, leading to social unrest and widening inequality.
G. The Future of National Economies Has Limitless Potential with AI
For countries that successfully embrace AI, the future is one of virtually limitless economic potential. As AI systems replace human labor, productivity will skyrocket, and economies will be defined by their ability to scale AI solutions across industries.
The key determinant of success will no longer be population size or natural resources, but the strength of a nation's AI capabilities. In this new paradigm, Nigeria’s vast population could be a strategic advantage if the nation rapidly embraces AI, creating new opportunities in AI-powered industries and services.
H. Conclusion
The future of the global economy is increasingly being shaped by the rapid advancements in AI and robotics. As the cost of producing goods and services approaches zero, the traditional economic models based on human labor will give way to a new paradigm where AI productivity defines national wealth.
For nations like Nigeria, the challenge is clear: embrace AI, build the necessary infrastructure, reskill the workforce, and foster a culture of innovation. Those who succeed will unlock limitless economic potential, while those who fail risk falling behind in the age of AI-powered abundance. The future belongs to those who can harness the power of AI, and the time to act is now.