Tech & Startup
Can Bangladesh leverage AI for
inclusive growth?
Sun Sep 15, 2024 10:29 PM
Last update on: Sun Sep 15, 2024 10:39 PM
The adoption of artificial intelligence in Bangladesh is still in its infancy, both for AI solution providers and their clients.
Image: Possessed Photography/ Unsplash.
Artificial Intelligence (AI) has emerged as a transformative force in the global
economy, positioning itself as a cornerstone of the fourth industrial revolution.
From theory to practical solutions, AI has proliferated over the last decade.
Defined as a simulation of human intelligence, AI combines technologies like
machine learning, natural language processing and robotics to solve business,
economic and social problems.
The impact of AI on developing economies can be illustrated through the
experiences of regions like India. The 2023 Ernst & Young report evaluated the
contribution of generative AI to India's economy at approximately USD 1.2-1.5
trillion in the next seven years, potentially increasing GDP by 5.2%-7.9%. AI is
remarkably used in India for fraud detection and risk management in financial
services and personalised learning in education. Companies like HDFC Bank
use AI algorithms to analyse transaction patterns and detect anomalies,
thereby preventing fraud. Likewise, AI-powered platforms like Byju's offer
personalised learning experiences for students, adapting to their learning pace
and style. This has democratised access to quality education, helping millions
of students across the country improve their academic performance.
What sectors in Bangladesh can be impacted by
leveraging AI?
According to the World Bank, Bangladesh's average growth rate over the
decade was 6.6%, with 5.8% in 2023. PwC estimated AI's total contribution to
the global economy at USD 17 trillion by 2030. Given AI's estimated
contributions to the Indian economy, AI could potentially generate billions of
dollars for the Bangladesh economy.
There are four sectors in Bangladesh where AI can create a critical impact: In
healthcare, it can enhance diagnostic accuracy, assist in early disease
detection, manage patient data, and personalise treatment plans. For
agriculture, AI-driven solutions can improve crop yields, optimise resource
management, and contribute to food security. In manufacturing, particularly
the RMG sector, which accounts for 80% of export revenue, AI can streamline
production processes, enable predictive maintenance, and facilitate smart
quality control. AI integration in RMG can optimise supply chains, forecast
demand, and enable personalised designs. AI can automate processes, improve
fraud detection, offer data-driven trading decisions, and enhance financial
inclusion in financial services.
Across these sectors, AI technologies such as machine learning, computer
vision, and natural language processing can analyse large datasets, identify
patterns, and make data-driven decisions, ultimately increasing efficiency,
reducing costs, and driving innovation in Bangladesh's economy.
Prominent Bangladeshi organisations are already at the forefront of AI
innovation. For example, Intelligent Machines (IM) is a leading AI company in
Bangladesh dedicated to using AI capabilities to solve problems and drive
efficiency across various sectors. IM has successfully implemented AI in
companies across telecom, financial institutions, and fast-moving consumer
goods. Their AI-based services are reported to provide solutions with over 90%
accuracy. The results that IM has provided thus far through AI integration are
noteworthy. Unilever has achieved a 260% stretch target in 2021 using Fordo, a
precision marketing AI product. BAT gained 253% improvements in brand
campaign execution accuracy in 2021 using Shobdo, a speech recognition AI
product. bKash gained 76% productivity and a 15% monthly onboarding
growth rate with the help of Nimonton and Biponon, two retail AI products.
IDLC Finance processes CIB reports in under 30 minutes using Dharapat, a
FinTech AI product. Finally, Telenor saved 92.5% of the cost in completing 25
million KYCs in Myanmar using Borno and Chotur, two document verification
AI products.
What are the challenges in AI implementation,
integration and regulation?
The adoption of artificial intelligence in Bangladesh is still in its infancy, both
for AI solution providers and their clients. Companies are reluctant to embrace
AI solutions, not only due to a lack of infrastructure but also because of a
shortage of understanding of these solutions. There may also be a reluctance to
embrace AI solutions due to data privacy concerns. Similarly, the local growth
of any AI-based service provider hinges on the readiness of consumers to adopt
the technology. Finally, data availability is also a concern since, without data
synthesising, the precision of AI solutions depends on the amount of relevant
data fed to AI bots for machine learning.
Given this scenario, it is challenging for the government to craft policies that
properly regulate the use of AI. The dilemma becomes whether the
government should allow AI to proliferate for the sake of innovation or
whether strong regulations should be in place well beforehand to uphold data
privacy. Perhaps the best practice would be to balance innovation and
regulation equally.
What are the prospects of AI in Bangladesh?
AI is catalysing change, enhancing productivity and efficiency, fostering
innovation, and creating new avenues for growth. By investing in AI education
and infrastructure, Bangladesh can position itself as a hub for innovation,
attracting investment and talent while unlocking new opportunities for
socioeconomic development.
The ICT Division of the Bangladesh government drafted a National AI Policy to
address the challenges of AI adoption and implementation. The policy expands
to ten sectors: telecommunication, data governance, environment, energy, and
climate change. It introduces a robust framework for ethics, data privacy, and
security, proposing the establishment of an independent National AI Center of
Excellence and a High-Level National AI Advisory Council for facilitating and
regulating AI services. The policy also provides detailed implementation plans
for government ministries, academia, and private institutions. The objective is
continuous monitoring, evaluation, and alignment with global advancements.
It also addresses other challenges more thoroughly, offering specific mitigation
strategies for data privacy, cybersecurity, and risk management.
Comparing AI's potential impact on Bangladesh with other developing
countries like India and Africa reveals similar opportunities for economic
evolution. As AI continues to engage with every corner of society, education
and awareness of its usage and benefits are paramount. Adopting best
practices, investing in infrastructure, and fostering a culture of innovation will
be crucial in harnessing AI's benefits.
Rafsan Zia is a Business Consultant at LightCastle.
Related topic:
AI
Artificial Intelligence
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