AI Productivity in Emerging Markets

The integration of artificial intelligence into enterprise and government workflows across emerging markets has transitioned from a nascent experiment to a foundational economic driver. As of early 2026, the aggregate AI-driven productivity market in emerging economies is valued at an estimated $47.3 billion, reflecting a compound annual growth rate (CAGR) of 31.4% since 2022. This expansion is underpinned by rapidly improving digital infrastructure, favorable demographic profiles with large working-age populations, and proactive government policies designed to accelerate technology adoption. Our research identifies four macro-regions driving this growth: Southeast Asia, led by Indonesia, Vietnam, and the Philippines; South Asia, anchored by India and Bangladesh; Sub-Saharan Africa, with Nigeria, Kenya, and South Africa as primary hubs; and Latin America, where Brazil, Mexico, and Colombia form the core corridor. Each region demonstrates distinct adoption curves, sectoral emphases, and risk profiles that create a heterogeneous but high-opportunity landscape for investors, technology providers, and policymakers. Market Size 2026 Avg. Productivity Gain Enterprise Adoption Enterprise adoption of AI tools—defined as deployment in at least one core business process—has reached 68% among mid-to-large firms in surveyed markets, up from 41% in 2023.

The average productivity multiplier attributable to AI deployment now stands at 2.7x baseline output per worker-hour across sectors including financial services, agriculture, manufacturing, healthcare, and logistics. These gains are most pronounced in data-intensive operations such as fraud detection, crop yield optimization, and supply chain management. value creation by 2030, up from 22% in 2024—representing the fastest-growing segment of the global AI economy. Several converging forces underpin this trajectory. First, mobile-first infrastructure has allowed many emerging markets to leapfrog legacy systems, deploying AI-powered solutions directly to cloud and edge environments without the burden of retrofitting on-premise infrastructure. Second, the cost of foundational AI models has declined by approximately 85% since 2023, democratizing access for small and medium enterprises (SMEs) that form the economic backbone of these economies. Third, regulatory environments are rapidly maturing: India's Digital India AI Mission, Nigeria's National AI Strategy, and Brazil's Marco Legal da Inteligência Artificial each provide frameworks that balance innovation incentives with governance standards.

AI Productivity in Emerging Markets | 2026 Despite this momentum, significant challenges remain. Connectivity gaps in rural areas, shortages of specialized AI talent, data sovereignty concerns, and the risk of technology-driven labor displacement require careful navigation. This report examines each of these dimensions in depth, providing granular regional and sectoral analyses, competitive mapping, investment trend data, and actionable strategic recommendations for stakeholders seeking to capitalize on—or contribute to—the AI productivity revolution in emerging markets. Show more