Generative Artificial Intelligence in the Global South: Navigating Economic Transformation, Inequality, and Governance Challenges

Generative artificial intelligence (AI)—systems capable of producing novel text, images, and other content—is rapidly advancing and spreading across the globe. This paper examines the implications of generative AI for countries in the Global South, focusing on its potential to drive economic transformation, its impact on social and economic inequalities, and the governance challenges it presents. A qualitative analysis of current literature and policy reports reveals that generative AI holds great promise for boosting productivity and innovation in developing economies, for instance through new business opportunities and improved service delivery. However, these benefits may be unevenly distributed: limited digital infrastructure, skills gaps, and biases in AI systems risk deepening existing divides between and within societies. Moreover, governance and regulatory frameworks in many Global South countries are struggling to keep pace with AI advancements, raising concerns around ethical use, data privacy, and accountability. The findings underscore the need for proactive strategies to harness generative AI for inclusive development—such as investing in digital infrastructure and education, and participating in international AI governance initiatives—to ensure this technological revolution narrows rather than widens global inequalities.