Limited Access to Finance Limited banking penetration and financial services restrict AI-
powered financial solutions.
Low Technological Literacy Lack of education and technological understanding among the
populace limits AI acceptance.
Weak Regulatory Environment Lack of robust regulations creates ambiguity and hampers
innovation.
Ethical and Security Risks Absence of proper guidelines may lead to severe ethical violations
and security breaches.
Source: Developed by the author In underdeveloped countries, the focus is often on meeting basic financial needs and overcoming
deep-rooted socio-economic challenges. AI can potentially play a transformative role, but this
requires a concerted effort across various sectors of society. Table 3 compares and contrasts the
solutions tailored to the challenges faced by developing and underdeveloped countries in the
implementation of AI within the financial domain. Innovative approaches, international
collaboration, and targeted investments can act as catalysts for change.
Table 3: Solutions for Developing and Underdeveloped Countries Solution Developing Countries Description Underdeveloped Countries Description Investment in Infrastructure Governments and private sectors
can invest in improving
technology and internet access.
Coordinated efforts to build
technological infrastructure are crucial.
Unified Regulations Establishing clear, coherent
regulations will foster innovation
and trust in AI technologies.
Creating comprehensive and clear
regulations will provide a conducive
environment for innovation.
Education and Training Developing training programs in
AI can bridge the talent gap.
Public and private investments in
technological education will foster
literacy.
