Artificial intelligence (AI) is increasingly shaping how entrepreneurs in developing countries start, manage and grow their businesses, a new publication from UN Trade and Development (UNCTAD) highlights.
Micro-, small- and medium-sized enterprises (MSMEs) and start-ups have embarked on using AI-powered tools across a wide range of activities, from marketing and customer service to logistics, finance and product design.
Large language models are emerging as foundational building blocks that allow smaller firms to adopt AI quickly and at a relatively low cost.
But AI adoption remains uneven, as many entrepreneurs reported a limited understanding of the business value of AI – what problems it can solve, how it fits into long-term business strategy and how to implement it step by step.
A lack of managerial understanding and technical talent slows AI implementation, especially for smaller firms with limited resources.
“AI can be a powerful tool for entrepreneurs, but its benefits are not automatic,” says Arlette Verploegh Chabot, who leads UNCTAD work on entrepreneurship development.
“Supportive ecosystems, the right skills and clear rules are essential to help entrepreneurs understand where AI adds value and how to integrate it into their businesses in a meaningful way.”