No Paper Title Author Name Page No

MERICAN Journal of Public Diplomacy and International Studies
www.
 grnjournal.us 
 
adoption of AI in the financial sector has been slower and marked by unique challenges and 
opportunities. 
The disparity between developed and less developed nations in the adoption of AI can be 
attributed to several factors, including technological infrastructure, regulatory environments, 
education, and availability of skilled labor. While developed nations often lead in innovation and 
application of AI, developing and underdeveloped countries face numerous barriers that hinder 
their ability to leverage this promising technology (Chen & Leung, 2018). 
The context of developing and underdeveloped countries presents both a set of unique challenges 
and a plethora of opportunities. The financial landscapes in these countries often exhibit vast 
unbanked or underbanked populations, inadequate technological infrastructure, and regulatory 
uncertainties (Demirgüç-Kunt et al., 2018). These factors create a complex environment where 
AI adoption is not merely a question of technological innovation but is intertwined with broader 
socio-economic development issues. 
Nevertheless, the prospects are bright. AI's potential to foster financial inclusion, enhance 
efficiency, reduce costs, and create new financial products and services is immense (Lagarde, 
2018). Moreover, the lessons learned and models developed in more advanced economies can be 
adapted and applied in these settings, albeit with careful consideration of local contexts and 
constraints. 
This paper explores the problems and prospects of AI integration into financial services within 
developing and underdeveloped countries. By providing an in-depth examination of the existing 
challenges and untapped opportunities, it aims to draw valuable insights and lessons from 
developed nations to create a pathway toward financial innovation and inclusiveness. The case of 
Uzbekistan, in particular, is examined to illustrate both the complexities and opportunities 
inherent in this transformative journey toward financial innovation.