The Banking Executive Issue - October 2025 Issue

Beyond the Hype Across many emerging economies, a quiet but unmistakable shift is taking place: populations, institutions, and policymakers are embracing artificial intelligence with notable confidence. Unlike the anxiety that often colors public debates in advanced economies, discussions in develop- ing regions reflect a deeper sense of possibility—an understanding that AI, if approached wisely, can support national development strategies, strengthen human capital, and broaden access to opportunities. This growing optimism is not theoret- ical. It is rooted in lived experience, visible progress, and a recognition that AI need not be the exclusive do- main of nations leading in model construction. Rather, its potential lies in how countries deploy, adapt, and refine the tools already available. For Arab economies—diverse in their ca- pacities, ambitions, and demograph- ics—this global trend offers critical insights, practical lessons, and timely opportunities. A SURPRISING REALITY: EMERGING ECONOMIES ARE MORE OPTIMISTIC ABOUT AI During a recent visit to Kazakhstan, observers were struck by the speed at which conversations about AI had entered the mainstream. Academics, entrepreneurs, and public officials spoke about it not with hesitation, but with conviction—seeing it as a means to address longstanding struc- tural issues, from limited economic diversification to the challenge of ex- tending essential services to remote regions. This experience mirrors broader global patterns. The United Nations’ latest Human Development findings show that people in emerging mar- kets are not only aware of AI’s bene- fits but are, in many cases, the BANKING EXECUTIVE 26 ISSUE 202 OCTOBER 2025 Beyond the Hype: How Developing Economies are Using AI to Advance Growth and Inclusion • EMERGING MARKETS SEE AI AS OPPORTUNITY. • AI TOOLS UNLOCK GROWTH AND INCLUSION. • ARAB BANKS CAN GAIN THROUGH SMART ADOPTION.