MERICAN Journal of Public Diplomacy and International Studies www.
grnjournal.us accessible but cautioned that regulatory oversight would be essential to prevent unethical
practices.
Nguyen et al. (2019) delved into the ethical implications and security concerns in implementing
AI in financial systems. They proposed that without ethical guidelines and stringent
cybersecurity, there could be risks of discrimination and breaches of privacy. Their work
underscores the need for international cooperation on ethical AI development. Arner et al. (2016)
provided a comparative analysis between developed and developing countries regarding AI
adoption in financial services. They found that while developing countries could leverage AI to
leapfrog in financial innovation, they must learn from the successes and failures of developed
nations in areas like regulation, education, and public-private partnerships.
The reviewed literature sheds light on the multifaceted aspects of integrating AI in the financial
sectors of developing and underdeveloped countries. From the exciting prospects of enhancing
financial inclusion and economic growth to the complex challenges relating to infrastructure,
regulations, ethics, and security, these studies collectively offer a rich insight into the current
state and future directions of AI in these regions.
ANALYSIS AND RESULTS Developing Countries In developing countries, the adoption of AI in finance is progressing, yet there are significant
challenges that need to be addressed.
The following Table 1 enumerates the major challenges that developing countries face in
implementing AI within the financial sector. These challenges are often compounded by rapidly
changing technological landscapes and market dynamics, which can cause additional barriers to
entry for local financial institutions.
