A country's level of digitalisation plays an important role in innovation, economic growth and job creation. Research shows that a ten-percent increase in mobile services increases a country’s GDP by half a percent. Today, 95 percent of the world’s population lives in areas covered by mobile broadband. Despite this, only 57 percent uses mobile internet. However, usage is increasing, and three-quarters of the increase seen in 2022 occurred in low- and middle-income countries, in which the majority of people without internet access live. One in four people in the least developed countries is now connected. At the same time, the rate of increase has slowed, which may be caused by an increase in the cost of mobile phones and in the cost of living, combined with difficulties in reaching the poorest part of the population.
Digitalisation can strengthen resilience and improve our ability to manage crises. Digital technologies introduce tools and innovative solutions to help address environmental challenges. They can also be used to increase resilience to climate change and protect those most vulnerable to natural disasters. Countries that had invested in digital infrastructure proved to be more resilient to the coronavirus pandemic. This was due to the fact that both private and public sector operations could continue working, despite lockdowns in society.
Digitalisation has also been important for Ukraine’s economic resilience against Russia. Ukraine ranks as one of the top global destinations for the IT outsourcing industry and has seen strong growth in technology exports and investments in recent years. The IT sector has adapted rapidly to face the new circumstances following Russia’s full-scale invasion. Innovation has accelerated and digital solutions have been developed as a result of many businesses being forced to relocate and adapt their operations. In some occupied regions, operators have been unable to maintain equipment, and telecom companies have constantly had to repair base stations and replace cables damaged by the war in order to restore services. Despite this, Ukraine has managed to maintain a level of mobile coverage that is amongst the best in the world thanks to operators working together. In addition, the IT sector grew by six percent in 2022, fetching over USD 7.3 billion in service exports.
Despite the positive effects of digitalisation, digital inequalities persist within and between countries, between different socioeconomic groups, and between women and men, hampering digital development. SMEs in particular face challenges in accessing and using digital technologies, primarily due to a lack of access to finance. In developing countries, mobile internet is used to a lesser extent in rural areas compared to urban areas.
Owning a mobile phone has proven to be an important tool for empowering women, as it facilitates the dissemination of information and services, amongst other benefits. At the same time, 19 percent fewer women use mobile internet, and of the 900 million women who are not connected, almost two-thirds live in South Asia and sub-Saharan Africa.
Artificial intelligence (AI) is constantly improving and can now perform tasks that previously only humans could do. The new technology will lead to one of the biggest transformations in human history and a transformation of the economy with new goods and services. Most sectors, if not all, will be affected.
How AI should be used is a complex issue, and there are differing opinions regarding how it can contribute to the realisation of the SDGs. For example, there have been reports about substantial quantities of water and energy being used to maintain the data centres that are used to train generative AI systems. Other challenges include built-in bias, unequal access, and potentially devastating consequences if the technology is used for the wrong purposes.
AI technologies have increased the scale, speed and effectiveness of digital repression. Automated systems have enabled governments to implement more precise and subtle forms of online censorship. A survey by Freedom House (2023) found that at least 47 governments used AI to manipulate online discussions to their advantage, twice as many as a decade ago. At the same time, AI-based tools that can generate text, sound and images have become more sophisticated, accessible and easy to use, leading to an escalation of disinformation flows.
AI can also positively contribute to development, for example by improving lending models and financial inclusion, by making “smart” electricity grids even smarter, supporting the integration of renewables into energy infrastructure, contributing to increased energy efficiency, and much more. AI can enable new types of remote preventive healthcare, improve diagnoses and accelerate the development of new medicines. The technology can also deliver personalised education online.
AI and digitalisation in general can boost productivity in certain occupations. However, increasing levels of automation may lead to higher unemployment and increase the need for new skills. The majority of developing countries will also need to expand and improve their digital infrastructure to utilise the potential of digitalisation and AI technologies. Another challenge is data security and privacy issues. It is therefore crucial that legislation evolves in line with technology and that digital education is made accessible.
