The Banking Executive Issue - October 2025 Issue

Beyond the Hype significantly more optimistic than populations in advanced economies. While US and European debates often focus on job displacement or labor-market disruption, citizens in developing regions tend to highlight the potential for stronger collabora- tion between humans and machines. This contrast, while intriguing, is log- ical. For many emerging economies, the question is not whether AI will restructure existing industries; it is whether AI can fill gaps that other- wise require substantial capital, in- frastructure, or specialized labor—gaps that may take decades to close through traditional means. BEYOND MODEL BUILDING: A DIFFERENT PATH TO AI ADOPTION Concerns about a widening “AI digi- tal divide” typically stem from the fact that only a handful of countries possess the resources and infrastruc- ture to build large-scale models. These systems require extraordinary investment, deep pools of high-end technical talent, and advanced hard- ware—all areas where countries like the United States and China have an undeniable lead. However, focusing exclusively on model construction obscures the areas where most countries can gain real advantage. AI’s value does not lie solely in building new systems, but also in the ability to apply exist- ing ones effectively. The rapid growth of open-source models—many of them developed in China—means that the cost of fine- tuning, adapting, and deploying AI tools is falling sharply. For govern- ments, banks, and private institutions in emerging economies, this levels the playing field. Innovation and competitive advantage no longer de- pend on developing foundational models, but on how existing tech- ISSUE 202 OCTOBER 2025 the BANKING EXECUTIVE 27