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Table 1: Challenges in Developing Countries 
Challenge 
Description 
Lack of 
Infrastructure
Limited access to advanced technology and internet connectivity 
hampers the implementation of AI. 
Regulatory Barriers
Inconsistent and unclear regulations create uncertainty for financial 
institutions aiming to innovate. 
Talent and Expertise 
Gap
Lack of skilled personnel in AI creates a bottleneck in technological 
advancement. 
Security Concerns
Inadequate cybersecurity measures pose threats to privacy and data 
integrity. 
Ethical 
Considerations
Potential biases in AI algorithms may lead to discrimination and other 
ethical issues. 
Source: Developed by the author 
Despite these challenges, developing countries have shown a strong desire to innovate and adapt. 
Partnerships between governments, private sectors, and international bodies are forming to 
address these issues, with some regions showing significant progress. 
Underdeveloped Countries 
In underdeveloped countries, the scenario is more complex, with even more pronounced 
challenges. 
The unique and severe challenges in underdeveloped countries are presented in Table 2. These 
emphasize the foundational hindrances to AI adoption in these regions. The situation is further 
aggravated by political instability, poverty, and other socio-economic factors. 
 

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43
A
MERICAN Journal of Public Diplomacy and International Studies
www.
 grnjournal.us 
 
Table 2: Challenges in Underdeveloped Countries 
Challenge 
Description 
Severe Infrastructure 
Deficit
Absence of basic technological infrastructure inhibits AI adoption.