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The Global AI Divide and the Imperative for Education Policy Reform

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Member for

1 year 2 months
Real name
Ethan McGowan
Bio
Ethan McGowan is a Professor of Financial Technology and Legal Analytics at the Gordon School of Business, SIAI. Originally from the United Kingdom, he works at the frontier of AI applications in financial regulation and institutional strategy, advising on governance and legal frameworks for next-generation investment vehicles. McGowan plays a key role in SIAI’s expansion into global finance hubs, including oversight of the institute’s initiatives in the Middle East and its emerging hedge fund operations.

Modified

Advanced economies push AI policy because productivity gains are visible and immediate
Poorer countries lag as low returns and weak capacity dampen urgency
Education policy can still slow the widening AI divide

Since the emergence of accessible large language models, a clear pattern has developed in the economic dynamics of artificial intelligence. A small group of developed nations now control the critical resources, expertise, and financial rewards associated with AI, while much of the world remains excluded. This disparity has significant consequences. Businesses in leading economies are integrating AI into their operations and products, fundamentally altering value creation. This trend is projected to accelerate productivity gains, increase wages for AI-proficient workers, and drive further market consolidation. Without targeted public policy and educational reform, these effects will likely intensify. The education sector faces a pivotal choice: whether to treat AI as a specialized technical field limited to research and development, or to redesign curricula, training, and institutional incentives to enable broader regions to convert AI access into concrete economic benefits. The resolution of this issue will determine whether the global AI divide becomes a primary driver of inequality in the next decade.

Global AI Divide: The Concentration of Access, Talent, and Capital

A defining feature of AI is its uneven geographic distribution. The development of models, computing infrastructure, and investment capital is concentrated in a small number of countries and cities. This concentration is significant because AI is a general-purpose technology that transforms business structures, task execution, and the valuation of skills. Countries with established technology sectors benefit from efficient pathways that move innovations from research to market. Their universities produce skilled graduates, startups secure funding, and established firms implement AI systems to enhance productivity. In contrast, many lower-income countries encounter substantial barriers, including limited research facilities, insufficient cloud infrastructure, and minimal venture capital. In regions lacking AI capacity, the technology does not redistribute tasks but instead exacerbates the divide between firms that can adopt AI and those that cannot.

Statistical evidence demonstrates that institutions in a select group of countries have developed the leading AI models and attracted the majority of private investment in recent years. This disparity perpetuates a self-reinforcing cycle: success draws additional capital, talent gravitates toward these hubs, and local firms benefit from early AI adoption. Conversely, economies with limited capital and restricted AI research and development experience a negative feedback loop. Lacking local models, computing resources, or skilled labor, they depend on external tools that are often unsuited to their languages, regulatory environments, or economic contexts. This reliance leads to lower immediate returns and persistent challenges in tailoring AI solutions to local development goals.

Figure 1: AI policy leadership clusters where younger populations and higher incomes make productivity gains more visible and politically valuable.

Education Systems: The Decisive Factor in Narrowing or Widening the Gap

Education is essential to any viable strategy for bridging the global AI divide. It serves as the primary means by which economies transform technological capabilities into increased productivity. However, different approaches to education produce different results. Traditional methods treat AI as a specialized field best left to computer science departments. This perspective overlooks a crucial point. AI is transforming routine tasks in healthcare, agriculture, logistics, and public administration. Its impact is greatest when it is combined with knowledge of these specific areas, rather than when it exists in isolation. To produce economic benefits, education and training initiatives must simultaneously broaden basic digital skills across the workforce, cultivate practical AI knowledge within key industries, and establish pathways for technical experts to convert prototypes into operational systems. Without this comprehensive approach, investments in equipment or short courses will have minimal impact.

There are practical limitations to consider. Many lower-income regions still lack consistent, affordable internet connectivity. While about 90% of people in high-income countries have internet access, this figure is less than a third in the poorest countries. This disparity is a basic reality that education policy must address. Online laboratories or cloud-based curricula cannot be scaled effectively if a large portion of the population lacks reliable access. Furthermore, even where internet access is available, there is often a lack of local support systems, such as instructors with current practical experience, industry partnerships, and accessible datasets. This deficiency makes it more challenging for educational institutions and training centers to offer practical modules that lead to measurable improvements in productivity. Therefore, policymakers should avoid treating digital skills as a universal solution. Instead, they should create detailed, sector-specific programs linked to measurable outcomes.

Practical Policy: Aligning Curriculum with Economic Returns, Not Just Popular Trends

The key policy consideration is whether an intervention will increase the anticipated return on investment for implementing AI in local businesses and public services. If the answer is affirmative, the investment is worthwhile. If not, it will likely waste valuable resources. This principle directs us toward targeted, results-oriented education policies. First, identify industries where AI can produce immediate gains in productivity. For many developing economies, this includes agriculture, logistics, health diagnostics, and the administrative tasks of small and medium-sized enterprises. Second, develop short, modular credentials in collaboration with employers and industry experts, focusing on changes to business processes, data-collection standards, and the implementation of small-scale projects. Third, invest in individuals who can serve as translators. These hybrid practitioners possess knowledge of both the specific industry, such as crop management, and the practical aspects of deploying AI models. These investments offer greater returns than general computer science degrees when resources are limited.

Figure 2: Even with similar exposure to AI, differences in governance and political alignment shape whether policy ambition translates into durable action.

Procurement is another critical yet frequently overlooked factor. Governments, as major purchasers of goods and services, can drive demand for systems that are interoperable, locally adaptable, and auditable. Such demand supports the growth of domestic capabilities. Educational institutions can align curricula with these procurement requirements, ensuring graduates are equipped to meet government standards. This alignment creates direct pathways from training to implementation, reducing the likelihood that skilled individuals migrate to foreign firms or utilize tools unsuited to local needs. This strategy mitigates risk for students and harmonizes the objectives of educational institutions, businesses, and government agencies.

Addressing Common Concerns

Concern 1: Investment is excessively concentrated, rendering it impossible for lower-income countries to catch up. In reality, although capital and computing resources have become highly concentrated, several smaller economies have demonstrated significant progress in the past five years through coordinated public-private initiatives. Targeted investments in data infrastructure, cloud computing, and sector-specific training have enabled these countries to support local firms in developing customized solutions, rather than relying solely on foreign technologies. The objective is not immediate parity, but the cultivation of essential capabilities that yield long-term benefits.

Concern 2: AI will only benefit those with advanced education, increasing inequality. This is a valid concern, but it is not inevitable. Training that focuses on practical tasks, such as using AI-powered decision support for nurses or agricultural specialists, can increase the productivity and wages of mid-skilled workers. The best approach combines brief vocational modules with employer commitments, rather than assuming that only university-level programs are beneficial. The focus should be on those with moderate skills, not just the top performers. When training is linked to measurable productivity improvements in companies or public services, the benefits are more widely distributed.

Concern 3: Local curricula will be ineffective if global AI models are proprietary and controlled by multinational corporations. This is true, but local capability does not require complete ownership of AI models. It requires the ability to adapt and integrate tools, assess their outputs, and govern their responsible use. Public-private partnerships, cloud computing credits, and licensing arrangements can provide access while local institutions develop the skills and governance structures needed to manage and customize systems. The immediate policy priority is to transform access into local value creation. Procurement practices, standards, and training programs are the tools to achieve this.

A Targeted Call to Action

The global AI divide is not inevitable; it is shaped by choices regarding investment, education, and technology acquisition. Education policy can serve as a catalyst, transforming AI from a force for concentration into an instrument for inclusive development. Achieving this requires targeted reforms: prioritizing sectors with demonstrable gains, developing stackable credentials aligned with employer needs, integrating training with infrastructure support, and funding roles that convert prototypes into practical solutions. These measures can mitigate the risk of the AI divide becoming a permanent source of inequality. Inaction will only allow the gap to widen. Immediate, decisive action is required.


The views expressed in this article are those of the author(s) and do not necessarily reflect the official position of the Swiss Institute of Artificial Intelligence (SIAI) or its affiliates.


References

International Telecommunication Union. (2024). Facts and figures 2024: Internet use. ITU.
Stanford Institute for Human-Centered Artificial Intelligence (HAI). (2025). The 2025 AI Index Report. Stanford HAI.
Visual Capitalist. (2025). Visualizing global AI investment by country. Visual Capitalist.
World Economic Forum. (2023). The ‘AI divide’ between the Global North and the Global South. WEF.
Zürich Innovation / Dealroom. (2024). AI Europe report 2024.

Picture

Member for

1 year 2 months
Real name
Ethan McGowan
Bio
Ethan McGowan is a Professor of Financial Technology and Legal Analytics at the Gordon School of Business, SIAI. Originally from the United Kingdom, he works at the frontier of AI applications in financial regulation and institutional strategy, advising on governance and legal frameworks for next-generation investment vehicles. McGowan plays a key role in SIAI’s expansion into global finance hubs, including oversight of the institute’s initiatives in the Middle East and its emerging hedge fund operations.