Geopolitical Shocks and Climate Change Will Remain Biggest Risks in 2025, Says EIU Report

"Hopes that the world will one day return to normal have been continually dashed since the covid-19 pandemic, and 2025 will be no different," the Economist Intelligence Unit (EIU) says in its Industry outlook 2025 report that explores the challenges, opportunities and trends to watch in the following six industries: energy, financial services, consumer goods and retailing, technology, automotive, and healthcare. The report further says: "Although working and travel patterns are normalizing, the economic and political outlook remains uncertain. EIU forecasts that real GDP will grow by a subdued 2.6% in 2025, similar to 2024 but slower than the average for the ten years before the pandemic." What is more, "The US economy will slow as labor markets tighten, but China's will accelerate slightly, amid stimulus and reviving trade. Those of the EU and Japan will also tick up, but only smaller developing markets such as India will deliver significant growth."

Geopolitical tensions and trade barriers will force more shifts in supply chains, amid subdued business growth. The EIU also presents the following predictions for 2025:

• Inflation is expected to ease, allowing for further monetary easing.
• Prices for agricultural and energy commodities will fall, but those for industrial raw materials will rise.
• Geopolitical risks will persist amid wars in Ukraine and the Middle East, while rising trade barriers between the EU, the US and China will reshape supply chains.
• Climate change will increase geopolitical tensions. National climate pledges will be updated at COP30 in November 2025, but much will depend on US leadership.
• Investment in technology, especially artificial intelligence (AI), will remain strong, but tech companies will face regulatory pressures, investor impatience and scrutiny over energy usage.

According to the EIU, "Falling inflation will allow monetary easing to continue. We expect the Federal Reserve (Fed, the US central bank) to cut interest rates by a further 50 basis points during 2025. We also expect prices for agricultural commodities and industrial raw materials to move in different directions in 2025- 26. Although agricultural prices will continue to trend downwards, prices for industrial raw materials will rise again, particularly for base metals that benefit from the green transition. As for energy commodities, prices will fall on average, but remain at risk from political shocks."

The UK-based company provides the following key global forecasts for each sector covered by its report:

• Energy: Fossil-fuel markets will continue to face geopolitical risks amid conflicts in the Middle East and Ukraine, but investment into renewables will remain strong, particularly in China.
• Financial services: Falling interest rates will weigh on bank profit margins, leading to lower dividend payouts, but the Basel III endgame will be eased or delayed further.
• Consumer goods and retailing: Global retail volumes will expand by 2.2%, helped by disinflation, but regulations around online retailing will tighten further, particularly for high-volume low-price Asian retailers such as Shein and Temu.
• Technology: More countries will start using satellite internet, but use cases will be limited to enterprise clients—military and maritime. Amazon's Kuiper will disrupt the market duopoly of Starlink and EutelSat OneWeb.
• Automotive: After a difficult few years, annual new-vehicle sales will reach a record 97.2m units in 2025. We forecast that sales of new cars will rise by 2%, commercial vehicles by 4% and electric vehicles by 16%.
• Healthcare: Global healthcare spending will outpace inflation, growing by 1.9% in real terms. The World Health Organization will make climate change the focus of its 14th four-year general program, which starts in 2025.

Companies and investors alike should take note that geopolitical shocks and climate change will remain the biggest risks in 2025. The EIU's "baseline forecast assumes that another large-scale war will not break out in Asia or the Middle East. However, the continued threat of geopolitical conflict, in addition to the continuing war in Ukraine, will lead to economic reconfiguration and policy divergence." Moreover, "The EU and the US are already raising barriers against Chinese exports in areas from  automotive and technology to healthcare. Chinese retaliation is likely to intensify in 2025 as rival blocs emerge across the world. These trends," according to the report's authors, "will reshape supply chains over 2025, and could upend our forecast of falling commodity prices and inflation."

Regarding climate change and how efforts to mitigate it will play in these political rifts, the report notes that "At COP30 in November 2025 governments are due to update their national climate pledges (NDCs), but much will depend on US leadership. The debate over environmental, social and governance (ESG) reporting will intensify as regulations enforcing disclosure come into effect in the EU and elsewhere." In addition, "EU climate regulations, due to come into force from 2026, will also have an international impact on trade by forcing multinational companies to monitor their supply chains."

While investment in technology, particularly AI, will be strong as projects gather pace, "technology companies will face pressure from several directions as regulations tighten (particularly in Europe), investors become more impatient for profits and their energy usage comes under more scrutiny." I agree with the EIU that "Companies will need to navigate these new requirements, while also trying to reconfigure their supply chains and seek out areas of growth."

What challenges, opportunities and trends are you watching as we celebrate the beginning of 2025?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Deliver on the Promise of AI, Unlock the Value of Data, and Eight Additional Opportunities for Tech Companies in 2025

In its "Top 10 Opportunities for Technology Companies in 2025," EY, a consultancy, explains that its report published in December 2023 "highlighted the need for tech businesses to reshape, reposition and innovate for success in a world led by generative artificial intelligence (GenAI). Throughout 2024, AI use-cases and copilot deployments surged across industries; however, many reached a plateau – often because companies were not fully prepared for the cost and organization-wide transformation to enable success."

The report adds that "To get ahead, tech companies – and their customers – need to move away from viewing AI as a capability applied to traditional business processes and instead fundamentally rethink and reinvent their business to operate in an AI-first era. Tech companies themselves can lead here by demonstrating their own internal transformation journey using their own products ('tech on tech')."

I agree with the assertion: "As 2025 unfolds, the acceleration of AI adoption will continue, but it will be against a backdrop of increasing capital needs, heightened global regulatory oversight and shifting economic landscapes."

The report's authors explain that "In compiling our annual Top 10 Opportunities for Technology Companies in 2025, we've attempted to provide a balanced, future-oriented view of the potential actions for tech companies across various growth and operational levers to drive value creation in 2025." Below are EY's Top 10 Opportunities for Technology Companies in 2025:

1. Deliver on the promise of AI: Transform potential into performance
2. Drive growth and optimize customer experience through an agentic AI future: Harness next-generation, semi-autonomous AI "agents" to create new customer offerings.
3. Adopt outcome-based pricing models to supplement subscription and consumption offerings: Get ahead of customer expectations with pricing that corresponds to customer value realization.
4. Demonstrate the power of an AI-first operating model: Rethink business models and processes to boost operational agility driven from AI.
5. Unlock the value of data: Assess opportunities to modernize and consolidate legacy systems to better harness the power of enterprise data.
6. Empower your workforce of the future with innovative training: Boost productivity and evolve skill sets for the era of AI.
7. Embed tax and legal functions at the outset of AI transformations: Improve strategic decision making by addressing rapid changes in tax, trade and compliance requirements by addressing them up front – not as an afterthought – to optimize business models and supply chains.
8. Inject AI into cyber defenses: Tech companies that embed AI-driven security solutions will not only protect their assets but also position themselves in the market as leaders in trusted innovation.
9. Move beyond contingency funds to free up capital to invest in emerging technologies: Free up resources by divesting non-core businesses/products to invest in high growth opportunities and drive sustainable growth.
10. Shape the agenda for incoming regulators: Actively engage with regulatory bodies to structure future frameworks and drive more consistency in regulatory outcomes.

The report concludes by explaining: "In 2025, tech companies have the opportunity to translate the excitement and expectations around AI into tangible business benefits for themselves and their customers. Seizing these 10 opportunities highlighted can help accelerate this goal, and in the process, shape tech companies AI-enabled business of the future."

How is your business utilizing AI to achieve tangible benefits for your team and your customers?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

5G Expected to Contribute $10 Billion to Africa's Economy by 2030

"Mobile connectivity is a key driver of digital transformation and socioeconomic growth in Sub-Saharan Africa," according to GSMA's annual report on the state of the Sub-Saharan Africa's mobile economy. The report points out that "Governments and businesses are increasingly using 4G and 5G networks alongside technologies such as AI and IoT to enhance productivity and service delivery. Despite growing demand for mobile, a significant usage gap persists. This underscores the need for efforts by operators to address the barriers to mobile internet adoption, such as device affordability, online safety and digital skills."

The report's key findings include:

• Persistent Usage Gap: Mobile internet penetration in Sub-Saharan Africa reached 27 percent by the end of 2023, yet a substantial usage gap of 60 percent remains. This gap represents millions who live within network coverage but face barriers such as device affordability, digital skills deficits, and concerns around online security. Globally, 3.1 billion people – 39 percent of the global population – are impacted by the usage gap. Sub-Saharan Africa is the least connected region, with the largest usage gap worldwide.
• Expanding 4G Coverage and Early 5G Growth: The region's 4G adoption is forecast to reach 50 percent by 2030, overtaking 3G as the primary technology. Although 5G adoption remains in its early stages, it is projected to reach 17 percent of total connections by 2030, primarily in South Africa, Nigeria, and Kenya.
• Economic Impact and Infrastructure Needs for 5G: By 2030, 5G alone is expected to contribute $10 billion to the region's economy, accounting for 6 percent of the mobile sector's total economic impact. GSMA's report emphasizes the need for progressive spectrum policies, particularly the release of mid-band spectrum, to support long-term growth and equitable digital access. Additionally, 5G Fixed Wireless Access (FWA) is gaining traction as a primary broadband solution in countries such as Angola, South Africa, Nigeria, Kenya, Zambia, and Zimbabwe, addressing demand for high-speed connectivity in underserved areas.
• Strengthening Digital Security: South Africa became the first country in Sub-Saharan Africa to implement GSMA Open Gateway APIs, focusing on fraud prevention and security with Number Verification and SIM Swap APIs. This initiative is part of broader efforts across the region to improve digital security, particularly within digital banking​.
• Generative AI Potential: Generative AI is expected to contribute up to $1.5 trillion to Africa's economy by 2030, with mobile operators increasingly using AI for customer engagement and network optimization. MTN and Vodacom, for instance, are deploying AI-powered initiatives to enhance operational efficiency, although the region faces a shortage of skilled AI professionals.

Through this report, the GSMA, a UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, advocates for a series of critical actions to ensure sustainable growth and digital inclusion:

1. Affordability Reforms: High costs remain a barrier to mobile access, with the report calling for reduced taxes on the sector, such as lowering import duties on handsets and cutting activation fees, to make services affordable and accessible for all.
2. Revitalized Universal Service Funds (USFs): Many USFs in Sub-Saharan Africa are underperforming, often hindered by inefficiencies. The report calls for reforms to improve transparency, streamline disbursements, and direct funds toward impactful initiatives, such as digital literacy programs in underserved areas.
3. Progressive Spectrum Policy: With increasing data demands, the report urges governments to release additional spectrum, particularly in the 6 GHz band, and to adopt policies that ensure efficient, affordable, and environmentally sustainable mobile network expansion.

Infographic: GSMA Intelligence

With respect the mobile technology's contributions to the UN Sustainable Development Goals (SDGs), the report says the industry "contributes to SDG 4, which seeks to ensure inclusive and equitable quality education, and promote lifelong learning opportunities for all. Digital transformation is making learning resources more accessible, enhancing educational outcomes and supporting continuous learning. By bridging gaps in education access and improving the quality of education, mobile technology is fostering a more inclusive society."

What investment or commercial opportunities are you seeing in Sub-Sahara's mobile technology industry? What are your recommendations for closing the digital divide?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

The Role of Mobile Technology in Driving Digital Transformation of Ethiopia's Economy

"Digitalization of the economy is a key driver of economic growth and government revenue" in Ethiopia, according to a report published by GSMA, a UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change. The report adds that digitalization "also supports socio-economic development and offers a path towards shared prosperity. By leveraging digitalization opportunities, the Government of Ethiopia can achieve sustainable economic growth and structural changes."

The report's additional key messages include:

• "Adoption of digital technologies across both public and private sectors can impact on economic growth. It can increase agricultural productivity, improve access to global value chains (GVCs) and increase efficiency of government and public services. Access to emerging technologies such as artificial intelligence (AI) and cloud computing are desirable as drivers of digital and financial inclusion which in turn supports human development."
• "Digitalization, including the telecommunications sector reform program and the introduction of mobile money, is a key part of the Ethiopian government's Homegrown Economic Reform Agenda (HGER) since 2019 and implemented under the 2021-2030 Development Plan, the Digital Ethiopia 2025 strategy, the Communications Service Proclamation No. 1148/2019 and the National Bank of Ethiopia's (NBE) strategic plans.

As explained by the report's authors, "In the five years since the launch of Digital Ethiopia 2025 and the start of the telecommunications reforms, the number of people covered by 3G networks has increased by 50%, while coverage of 4G networks has increased by 8 times. This study identifies further opportunities and quantifies the economic value of adopting digital technologies across Ethiopia's economy. It determines how these opportunities can be unlocked through policy reforms, particularly focusing on the key role that the mobile telecommunications sector and mobile money services plays in supporting the process of digitalization."

Regarding policy recommendations, I concur that "Policy reforms must balance short-term objectives with long-term investment and development to realize the full potential of digital transformation in Ethiopia. Reaping the wide-ranging benefits of digitalization will require bold actions to support demand, reduce the cost of supply and promote a policy environment that supports investment."

What is more, "The economic and social value of digital and emerging technologies relies on mobile networks as the backbone of digitalization of the economy and the mobile sector is best positioned to partner with the government to develop a mission-oriented public policy that can catalyze innovation across multiple sectors in the economy."

The report concludes with the identification of  five areas of policy recommendations that the government, the Ethiopian Communications Authority, NBE, and other relevant authorities could undertake to support the development of the mobile telecommunications sector, mobile money services, and the wider process of digital transformation in Ethiopia:

1. Telecommunications reform implementation: Fair and timely implementation of the telecom reforms agenda to enable Digital Ethiopia transformation and inclusion objectives.
2. Industry sustainability and investment: Support industry sustainability and development through investment and tax incentives, including reduce or remove customs duty and other costs on mobile devices to improve affordability and reduce the usage gap.
3. Licensing, spectrum, and regulatory fees: Ensure affordable and predictable licensing, spectrum, and regulatory fees to encourage investment and densification of existing networks, rollout of new generation networks and improve affordability of services.
4. Mobile money and payments: Discourage distortive taxation on emerging mobile money services, and continue implementing regulatory reforms to enable digital financial strategy and inclusion objectives.
5. Demand-side policies: Support demand by continuing implementing digital government and digital ID programs, and incentivizing adoption of digital technologies by consumers and firms.

What are your recommendations for how mobile technology can drive the digital transformation of Ethiopia's economy?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Driving Kenya's Economic Growth Through Digitalization

In a press release announcing the publication of a report focusing on the drivers behind the digital transformation of Kenya's economy, the GSMA, a UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, said: "Kenya's digital economy will contribute KSH 662 billion to GDP by 2028. This growth, driven by strategic policy reforms, will accelerate digitalization in critical sectors such as agriculture, manufacturing, transport, and trade. In addition to these advancements, the report forecasts the creation of 300,000 new jobs and an increase in tax revenues by KSH 150 billion."

What is more, "To sustain its economic momentum, diversify the economy, boost productivity, and create high-quality jobs – particularly for young and rural populations – Kenya is focusing on digitalization as a key driver of economic growth, government revenue, and socio-economic development."

Below are the report's key messages:

• "The digitalization of the economy is a key driver of economic growth and government revenue, as well as supporting socio-economic development and offering a path towards shared prosperity. By leveraging digitalization opportunities, the Government of Kenya can achieve sustainable economic growth and structural change."
• "Adoption of digital technologies across both public and private sectors has been observed to positively impact economic growth. It increases productivity in agriculture, improves access to global value chains (GVCs) and improves the efficiency and transparency of government and public services. Moreover, access to emerging technologies such as mobile money, Artificial Intelligence (AI) and cloud computing are desirable as drivers of digital and financial inclusion which in turn supports human development."
• "This study identifies opportunities and quantifies the economic value of adopting digital technologies across selected sectors of Kenya's economy. It identifies how these opportunities can be unlocked through policy reforms, particularly focusing on the key role that the mobile telecoms sector plays in supporting the process of digitalization."
• "Kenya is a regional leader in mobile connectivity and Mobile Financial Services (MFS). It pioneered the use of mobile money, making huge strides in financial inclusion of the unbanked, and has retained its position as a global leader in this area. Further extending its reach as the enabler of electronic payments across the digital economy, as well as traditional sectors, can propel digitalization and growth for many more Kenyans and achieve increased resilience and revenue for the Government."

The report also "identifies a series of policy recommendations that, if implemented, will close the internet usage gap from the current level of over 64% of the population to 51% in 2028. This would result in 49% of the population of Kenya being connected to the Internet, equivalent to over 10 million additional people." The four priority policy reforms are:

1. Tax restructuring in the telecommunication industry to purposefully drive usage.

2. Implementing policies and programs to improve device affordability.

3. Ensuring a sustainable and predictable investment environment. This includes:

• Supporting financial sustainability through tax deductions against spectrum payments,
• Reducing the cost of energy to power infrastructure,
• Adopting a favorable spectrum pricing model, and
• Accelerating the license renewal process.

4. Supporting productive use of digital technologies by businesses across economic sectors, with targeted policies to improve digital skills and human capital, support MSMEs and start-ups and prioritize context-appropriate technologies and local needs.

The report's authors importantly point out that "These policy reforms have the potential to make a significant contribution to Kenya's economic objectives, including economic transformation across important sectors such as agriculture and manufacturing." The potential macroeconomic impacts are summarized in the image below:

Kenya has firmly positioned itself as a leader in mobile financial services and digital innovation. Following the development of information and communications technology sector in Sub-Saharan Africa for over 30 years, I appreciate how GSMA's study outlines the economic benefits of expanding digital adoption and provides a roadmap for maximizing these gains through targeted policy actions.

What are your recommendations for how Kenya can drive economic growth through digitalization?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

With the Rise of genAI in North America, GSMA Says 'Ethical Concerns Around AI Also Need to Be Addressed'

The US and Canada continue to be among the global frontrunners in 5G adoption, a testament to the significant investments by operators and the strong demand from customers for enhanced connectivity," says the GSMA in its annual report on the state of North America's mobile economy. (North America in this report as the US, Canada and the Caribbean.) The UK-based organization adds that "The rollout of 5G across North America is occurring alongside a wave of mobile network innovations and technological advancements, including the rise of generative AI (genAI), the expansion of satellite capabilities and increased network API exposure. Operators and the wider mobile ecosystem see these trends as critical to unlocking innovation and generating new revenue opportunities.

The report's key findings include:

• 5G enters its next phase: "North America continues to be a global leader in 5G. By the middle of 2024, 5G accounted for over 55% of connections in the region. 5G fixed wireless access (FWA) services have also gained significant traction, with the US reaching nearly 10 million FWA subscribers at the end of Q2 2024."
• A new chapter begins for private wireless networks: "Private wireless networks have existed for some time, but adoption had been relatively low. Thanks to evolving 4G and 5G networks, however, mobile technologies and networks can now more tightly link with enterprise needs. An improved ability to customize networks for specific enterprise use cases, facilitate greater security and enable connected machines and processes are among the many operational benefits conferred by private wireless networks. These opportunities are being explored in a range of enterprise sectors."
• Momentum builds behind aerial connectivity: "Telecoms networks remain the primary form of connectivity, supported by the wide area coverage of wireless networks and the mass production and adoption of mobile devices. In recent years, however, technological advances in various satellite and other non-terrestrial networks (NTNs) have helped to overcome several limitations associated with aerial connectivity. This has resulted in significant performance improvements, lower deployment costs and more commercially viable business models for satellite and NTN-based connectivity solutions."
• Operators take steps to fulfil generative AI's potential: "Operators in North America are adopting genAI across various domains, supporting both internal transformation and new business opportunities. Much of the focus is on deploying genAI in customer service departments to enhance employee productivity and deliver more personalized customer offers. GenAI is also being used in network management, aligning with operators' focus on improving user experience and network security. Many strategic collaborations are underway to help operators maximize the value of this new technology. However, challenges such as data privacy concerns and the shortage of skilled AI professionals remain key barriers to AI adoption."
• GSMA Open Gateway gains traction: "By June 2024, 53 operator groups had signed up to the GSMA Open Gateway, representing 240 mobile networks and accounting for 67% of mobile connections globally. Between the participating operators, all regions are covered; AT&T, Dish, Rogers, T-Mobile US and Verizon are among the operators in North America that have signed up to the initiative. Many of the early API launches around the world have focused on fraud prevention and security, using SIM Swap and Number Verification. These represent easy wins, given the ever-present risks from fraudsters and breaches for operators and their customers. Other parts of the API library are also being deployed, as evidenced by the work done by US operators and drone manufacturers to test the Device Status API."
• Policies for success: "Continued mobile evolution depends on the expansion of operators' mobile spectrum holdings across low, mid- and high bands to deliver speed, capacity and geographical coverage. Additional spectrum can boost the provision of cost-efficient investment and enhance network quality in North America, which can support mobile to grow its role in regional economic development strategies."

Infographic: GSMA Intelligence

The report importantly points out that "Ethical concerns around AI also need to be addressed." The GSMA asserts that "The mobile industry is committed to the ethical use of AI in its operations and customer interactions to protect customers and employees, remove any entrenched inequality and ensure that AI operates reliably and fairly for all stakeholders." Moreover, "The GSMA's AI Ethics Playbook serves as a practical tool to help organizations consider how to ethically design, develop and deploy AI systems. Increased collaboration between policymakers can also help private sector organizations establish appropriate AI guidelines. To support this outcome, the EU AI Office and the US AI Safety Institute recently announced they will work together on tools to evaluate AI models."

As for the mobile industry's impact on the UN Sustainable Development Goals, the report says its "most recent analysis shows that the mobile industry continues to achieve its highest impact on SDG 9: Industry, Innovation and Infrastructure, driven by the increased reach of mobile networks and growing take-up of mobile internet services." What is more, "Progress has also been made in reducing disparities in mobile internet adoption between different user segments, supporting the industry's contribution to SDG 5: Gender Equality and SDG 10: Reduced Inequalities."

What do you think of the report's findings? What are your recommendations for how to ethically design, develop and deploy AI systems?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Toolkit Designed to Help Deliver Digital Skills Training for Impact in Sierra Leone

In my experience working in emerging and developing countries, many people mistakenly assume that if an individual is connected to the mobile internet, then they are able to utilize various life-enhancing applications. However, there is a stark difference between having access to the applications and the knowledge to make full use of these digital tools.

According to a report published by GSMA, "Mobile networks are the primary – and often only – channel for people to connect to the internet, especially in low-and-middle income countries (LMICs)." What is more, "Despite the rapid growth in mobile internet adoption in recent years, there remains a significant usage gap in LMICs: 48% of the population across LMICs still do not use the mobile internet. Of this group, 42% live within the footprint of a mobile broadband network but are not using the internet – this is known as the 'usage gap.' In Sierra Leone, the usage gap is significantly higher at 77%. Among people in this group, a lack of digital skills is one of the most significant barriers preventing them from adopting the mobile internet."

To address the digital skills barrier, the UK-based organization, which aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, says it "developed the Mobile Internet Skills Training Toolkit (MISTT), a free-to-use set of resources covering the fundamentals of the mobile internet, popular apps and use cases." The report also points out that "In order to gather evidence on the efficacy of the MISTT and identify potential areas for further improvements, the GSMA evaluated a digital skills training campaign conducted by Orange Sierra Leone, using MISTT. Specifically, the evaluation aimed to understand how effectively the MISTT delivers improved digital skills, what the socioeconomic impact is on trainees, and what improvements are needed to better reach the underserved."

Below are the report's key findings:

• "MISTT improved digital skills for the majority of trainees interviewed in Sierra Leone, by reducing the functional barriers to mobile internet use, boosting learners' self-confidence and sense of independence and increasing the frequency of internet use by the trainees."
• "There are indications that MISTT has had a positive socio-economic impact in Sierra Leone. This was visible in two main ways: enhancing trainees' potential to conduct business online has improved their prospects and income; and trainees have acquired greater knowledge and education across diverse topics."
• "The impact of MISTT training on business was most observable for women, as they experienced the greatest changes to their digital skills confidence levels, as well as day-to-day life benefits, including being able to do business online while at home. Women were also more likely to enjoy the spill-over effects of the training, as their spouses passed on what they had learned."
• "Incentives are a critical part of digital skills training – both for potential customers and trainers. The effectiveness of digital skills training can be greatly enhanced by providing appropriate incentives to potential trainees and their trainers. For trainers, this might involve providing financial incentives for the delivery of training that drives digital inclusion. For customers, this involves emphasizing how the mobile internet can be valuable to their lives and making them aware of any incentives, such as free mobile data and lunch, that are available to reward participation at in-person training events."
• "Face-to-face training provides numerous advantages for the underserved. Face-to-face or in-person training allows a more tailored learning experience with opportunities for practical application by learners. For example, in-person training enabled trainers to spend time answering trainees' questions and providing tailored support on some of the challenges that they encounter. This is most important for learners with lower literacy and education levels, as well as those in rural areas. However, while effective, in-person training may be more costly for implementers and more difficult to scale."
• "Digital skills training needs to consider the specific barriers that underserved users face. Issues, such as lower levels of education and a lack of basic digital skills and confidence, can impact on people's ability to access and participate in training activities. The evaluation also highlights the importance of adopting a gender lens to the delivery and expansion of digital skills training to ensure it is reaching women. There is a need to consider who might be excluded or disadvantaged from the proposed delivery approach, as well as ensuring the location, timing and content of the training, for instance, will meet their needs."
• "To enhance the scalability and viability of MISTT digital skills training, implementers can explore other approaches to delivering digital skills beyond in-person channels to understand their effectiveness. Remote channels, for example videos, voice messaging and radio broadcasts, may provide an effective way for delivering digital skills training and/or improving training awareness in a cost-effective manner. Both in-person and remote channels have relative advantages and disadvantages. While in-person channels may be more effective at reaching certain population segments, remote channels provide unique benefits to implementers as they are easier to scale and can be iterated or updated more easily than face-to-face channels. Depending on the training objectives, both digital and in-person channels can be used simultaneously to complement the other."
• "Combining digital skills training with other events or product pitches can extend the reach of digital skills training for the underserved and offer benefits to implementers. Delivering digital skills training alongside other activities, such as entertainment events or with the sale of a product or service, can encourage wider participation by reaching people who may be reluctant to attend a formal training event, for example, or linking it to something that is seen as relevant to them. Nonetheless, it's important to bear in mind the needs of underserved groups while designing these activities. For example, for women, the idea of 'standing in the street watching entertainment' may not feel culturally appropriate, as many are worried about theft or appearing to be lazy people who have nothing important to do."

I appreciate how GSMA's report "highlights the key learnings from the evaluation of the MISTT digital skills training initiative implemented by Orange Sierra Leone. It provides key insights on the effectiveness of MISTT in improving digital skills acquisition among different underserved groups, as well as the socio-economic impact of the training." There is also value in how the report "identifies considerations for improving the effectiveness of digital skills training in reaching underserved groups." Importantly, however, the GSMA notes that "the insights and recommendations in this report do not represent our comprehensive view of how to implement MISTT. Rather, they are recommendations specifically arising from this evaluation, and can be a basis for further research and trial. This complements our existing research on digital skills and evaluation of MISTT implementations."

What are your recommendations on how to promote digital literacy and reduce the digital usage gap in LMICs?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

A Roadmap to Ensure That Every Citizen in Zambia Benefits From the Digital Revolution

My colleague, Aze Malawo, who leads the operations in Sub-Saharan Africa for Global Tactics, an multinational advisory firm that helps clients understand how the world is changing, and how that creates opportunities to be seized and risks to be managed, splits her time between Washington, DC and her native Zambia. Since my first meeting Aze in the mid-2000s, I have heard about the beauty of the southern African nation and the business opportunities that exist in several sectors including the information and communications technology sector.

It was, therefore, with great interest to read a report published by the GSMA, a UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, highlights how "the digitalization of the economy is a key driver of social and economic growth in Zambia." According to the report, "By taking advantage of the opportunities offered by digitalization, the Government of Zambia can deliver on the development objectives that it has defined and achieve sustainable economic growth."

The report's key findings include:

• Adoption of digital technologies across both public and private sectors accelerates economic growth by promoting innovation and investment. It increases productivity across all sectors of the economy, improves access to global value chains (GVCs) and improves the efficiency and transparency of government and public services. Moreover, access to emerging technologies such as mobile money, artificial intelligence (AI) and cloud computing are desirable as drivers of digital and financial inclusion which in turn supports human development.
• This study identifies opportunities and quantifies the economic value of adopting digital technologies across selected sectors of Zambia's economy. Accelerated development of the digital economy would benefit both the Government of Zambia and the country's citizens in multiple ways. Economic growth would raise incomes, create jobs and raise tax revenues. Digital technologies would also provide direct benefits through enhanced access to information, productivity-enhancing technologies and improved educational outcomes.
• Mobile connectivity and mobile money both play a key role in digitalization. Mobile broadband connectivity provides the foundation for the digitalization process. Mobile money is also critically important, providing individuals and businesses an accessible and efficient route to financial inclusion.
• The mobile telecoms sector in Zambia has made steady progress in recent years but there remain significant challenges. These challenges include expanding access and increasing adoption of digital services, particularly among low-income households and in rural areas. This will require further network rollout and upgrades, support to ensure that devices and services are affordable for everyone and boosting adoption through stimulating demand for digital services.

The report importantly points out that "[p]olicy plays a critical role in the future development of the digital economy in Zambia. The growth and development of the digital economy is strongly influenced by policy and regulatory decisions taken by the government." The GSMA says its "study identifies how opportunities for economic growth and development can be unlocked through policy reforms. Overcoming the challenges facing the sector will require bold policy initiatives on the part of government to stimulate demand, reduce the cost of supply and promote investment in mobile telecoms networks and in mobile money services."

GSMA's report also "identifies a series of specific policy recommendations that, if implemented, would increase the number of internet users in Zambia by 2.1 million by 2028. This would reduce the internet usage gap by 9 percent points."

The priority policy reforms include:

• Reducing sector-specific taxes and fees on mobile telecoms services
• Reducing operating costs and improving the financial sustainability of the mobile business
• Modernizing the tariff regulation regime, to provide more certainty for operators
• Lifting restrictions on mobile money charges and removing the mobile money levy
• Stimulating additional demand for mobile telecoms services

If adopted, these policy reforms "will help Zambia to achieve its economic development objectives, including economic transformation across important sectors such as agriculture and manufacturing. The potential macroeconomic impacts are summarized below in Figure 1."

Image: GSMA

In a press release issued by the GSMA, Angela Wamola, Head of Sub-Saharan Africa for the UK-based organization, said: "The Zambian government has demonstrated strong commitment to digitalization through its National ICT Policy 2023 and the Eighth National Development Plan. Now, more than ever, collaborative action between the government, industry, and stakeholders is needed to create the enabling environment for digital transformation. The future of Zambia lies in digital connectivity. With the right policies, we can close the digital divide, empower communities, and unlock new economic opportunities. The Zambia Digital Economy Report provides a clear roadmap to ensure that every citizen benefits from the digital revolution. Now is the time for bold action."

What are your thoughts about the report's findings? What digital transformation opportunities are you seeing in Zambia's mobile technology sector.

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Pakistan Has High Aspirations to Become a Digital Nation, Says GSMA Report

Over the course of my professional career, I had the opportunity to visit Pakistan a few times. Despite the security concerns that are prevalent throughout the South Asian country, I was routinely impressed by the strong desire Pakistanis had in utilizing life-enhancing digital technologies. It was, therefore, with great interest that I read a report published by the GSMA, UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, that says Pakistan is poised to unlock its economic potential through accelerated digital transformation.

The report begins by noting how "Countries around the world and in Asia Pacific, including Pakistan, have stepped up efforts to become digital nations. This entails integrating digital technologies and services into every sector of the economy as a means of building resilient economies with finite resources and achieving sustainable and inclusive economic growth." GSMA Intelligence, the research arm of GSMA, has identified the following "five key components that must be in place for countries to realize their digital nation aspirations."

1. Infrastructure: Foundation upon which digital services and applications are created, stored, distributed and consumed;
2. Innovation: Ability to create and integrate new technologies to enable a variety of new solutions and use cases for the economy;
3. Data Governance: High data governance standards, with efforts to become more transparent, participatory and accessible.
4. Security: Advanced cybersecurity measures to help businesses to operate safely in a fully digital environment.
5. People: Change in culture and personal behavior, and the right levels of digital literacy and skills to be able to navigate an evolving digital world.

As the report points out:

These components are interconnected and must be developed together to avoid potentially costly gaps and delays in the implementation of digitalization initiatives. For example, a lack of adequate infrastructure could offset efforts to support innovation, while a lack of trust due to poor data governance and security could delay the full use of infrastructure investments. It is important to note that developing the components of a digital nation collectively requires significant investments from both the public and private sectors, particularly for capital intensive projects, such as the deployment of next generation telecoms infrastructure, as well as enabling policies and regulations to ensure the sustainability of those investments.

With respect to assessing Pakistan's digital nation aspirations, the report explains that "Digital Pakistan is the flagship initiative of the government of Pakistan to expand the knowledge-based economy and spur socioeconomic growth using digital technologies. Launched in 2018, the overarching goal of the initiative is to promote connectivity, improve digital infrastructure, increase investments in digital skills, and promote innovation and tech entrepreneurship. Over the years, the government of Pakistan has introduced various policies and initiatives to support the realization of Digital Pakistan and, by extension, set the country on the path to becoming a digital nation."

The report contains a table that maps the contribution of these policies and initiatives to the development of the components of a digital nation in Pakistan. The content of the table is listed below.

1. Infrastructure: Pakistan is taking strides towards digital transformation with the approval of the Digital Nation Pakistan Act 2024. This legislation lays the groundwork for a digitally empowered nation by establishing two crucial bodies:

• National Digital Commission: As the policy-making hub, this commission, chaired by the Prime Minister and comprising federal and provincial representatives
• Pakistan Digital Authority: This operational arm will be responsible for translating the commission's policies into action.

While the potential benefits of this digital transformation are immense, challenges in infrastructure development must be addressed to ensure a successful transition.

2. Innovation: The government has been a driving force behind Pakistan’s startup ecosystem, with initiatives such as the Pakistan Startup Act and the establishment of incubators and accelerators across the country, providing an enabling environment for startups.

3. Data Governance:

• The Prevention of Electronic Crimes Act 2016 is currently the primary legislation that provides a legal framework in relation to various kinds of electronic crimes and extends to unauthorized access to personal data.
• After a four-year consultation period, the government is in the final stages of developing the Personal Data Protection Bill (introduced in 2021). The bill is anticipated to be presented to the cabinet for approval soon.

4. Security: The National Cyber Crime Policy 2021 was approved by parliament in July 2021. It provides objectives aimed at addressing cybersecurity challenges and risk factors prevalent in Pakistan.

Computer Emergency Response Teams (CERTs) have been established to address the emerging needs of security and safety with increased digitalization.

5. People: Much of the government's focus is on eliminating the digital skills barrier for unconnected populations. There is an opportunity to drive skills trainings at both the academic and professional development levels to create a digital-ready workforce.

The report's authors importantly note that "Despite these developments, current realities on the ground suggest that that the vision of Digital Pakistan may not be achieved, thereby slowing the country's progress towards becoming a digital nation. For example, Pakistan has witnessed rapid expansion in mobile broadband networks over the last decade, with 81% of the adult population now residing in areas covered by 3G or 4G networks, compared to just 15% in 2010, however, only 23% of the population currently subscribe to mobile internet services. This indicates a gap in actual usage versus availability and underlines the scale of the challenge to bring unconnected people online."

The report also emphasizes the importance of financial reforms and strategic initiatives. Recommendations include eliminating the 15% Advance Income Tax and the 19.5% sales tax on mobile services, addressing high spectrum prices, and introducing a smartphone financing policy to improve access to affordable devices. Additionally, the GSMA advocates for a rational approach to spectrum pricing ahead of the planned 5G spectrum auction in early 2025.

What are your thoughts about Pakistan's high aspirations to become a digital nation?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Exploring Use Cases on How AI Delivers Impact in Africa

"AI holds immense potential to boost Africa's economy and to support the Sustainable Development Goals (SDGs) on the continent, says a report published by the GSMA, a UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change. With funding from the UK Foreign, Commonwealth and Development Office, the report's authors explain that "While AI is already being developed and deployed to support a range of use cases across African countries, little research has focused on building a body of evidence of AI use cases for development on the continent." They further explain that their "report is based on the analysis of over 90 use case applications identified in Kenya, Nigeria, and South Africa – which benefit from thriving tech ecosystems – across agriculture and food security, energy, and climate. While many AI use cases are relatively nascent, with some being deployed as part of projects or pilot schemes, a number of commercially viable solutions have also emerged. Often, AI is being incorporated into existing digital products and services, acting as an enabler to make digital solutions more relevant and efficient, amplify their impact, and facilitate scaling."

The report importantly points out that "The agritech sector is seeing most of the AI innovation, especially in Kenya and Nigeria where agriculture continues to play a significant role in the economy. AI is already being used for agricultural advisory, with companies like TomorrowNow and ThriveAgric providing farm-level insights to farmers, and for financial services with companies like Apollo Agriculture developing alternative credit assessment methods."

AI is also "being deployed in the energy sector, especially in Nigeria, where emerging technologies like Internet of Things (IoT) act as an entry point for advanced data analytics in smart energy management. Use cases such as energy access monitoring and productive use asset financing, developed by companies like Nithio, remain at a developing or nascent stage but present significant potential to reduce energy poverty. AI is also supporting climate use cases especially for biodiversity monitoring and wildlife protection in Kenya and South Africa, driven by large tech companies like Microsoft's AI for Good Lab and nonprofit organizations such as Rainforest Connection."

Regarding high-level recommendations, the report says different stakeholders – governments, development partners, development finance institutions (DFIs), non-governmental organizations (NGOs) and Civil Society Organizations (CSOs), large tech companies and startups, and research and academic institutions – "can take a number of actions and collaborate to ensure that impactful innovations in Africa can be deployed and scaled. This involves investing in domain-specific and local language data, adopting participatory approaches to data collection, unlocking access to existing data sources, and ensuring data privacy and security."

The report adds that "Strengthening baseline infrastructure and promoting renewable energy, providing hardware and cloud credits, enhancing edge computing capabilities and building institutional capacity will be essential to boost local compute capacity. In addition, fostering academic-industry collaboration, raising awareness and building capacity in the public sector will be essential to create a pipeline of AI talent while ensuring informed policymaking. To foster adoption and usage of AI-enabled services, enhancing digital skills among end users and integrating emerging skills like prompt-engineering into upskilling programs will be key, especially as generative AI solutions gradually grow in Africa."

Moreover, "Stakeholders across sectors can also focus on supporting the wider tech and AI ecosystem to foster an environment conducive to innovation and AI deployment across use cases. This involves engaging in partnerships to unlock access to critical resources for AI entrepreneurs and researchers, and to support the development of the AI ecosystem through data-sharing or infrastructure-sharing initiatives."

I concur with the authors that:

Adopting a consortium-based approach has the potential to help address the financing gap, while adopting innovative finance mechanisms can de-risk investments. Combining funding with technical assistance and go-to-market support can also help founders in their scaling journey. Increased R&D spending will be essential to support local research capacity, while local-global knowledge exchange can drive further momentum and raise awareness about local innovation. As countries work on developing national AI strategies, it will be critical to ensure a collaborative and inclusive process, to include principles for the ethical and safe use of AI, and to establish a clear roadmap for implementation. Policymakers can also consider rolling out regulations in a phased manner to allow innovation to flourish.

Do you agree with the recommendations on how different stakeholders can deploy and scale impactful AI innovations in Africa?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Mobile Revenues Will Reach $227 Billion in Asia Pacific by 2030, Says GSMA Report

"The mobile industry continues to underpin the rapid digital transformation in Asia Pacific, with advanced mobile networks enabling innovative use cases for consumers and enterprises," according to GSMA's annual report on the state of the mobile industry in the Asia Pacific region. The UK-based organization, which aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, adds: "The role of mobile infrastructure and services will become even more vital to the way society functions as governments increasingly use digital technologies to tackle some of the most pressing social and economic challenges."

The report points out that "By the end of 2023, 1.8 billion people in Asia Pacific (63% of the population) subscribed to a mobile service." What is more, Growth in mobile internet penetration has been remarkable. At the end of 2023, 51% of the region's population used mobile internet, equating to just over 1.4 billion users – almost triple the figure a decade earlier. However, large swathes of the population across the region still remain unconnected, most of them within the usage gap." The GSMA importantly notes that "Addressing the usage gap is crucial to closing the digital divide and enabling life-enhancing applications around finance, health and education."

The report's key findings include:

• 5G continues to rapidly grow, but 4G will remain the dominant technology for the foreseeable future
• By the end of 2030, Asia Pacific countries will be on both ends of the global 5G spectrum
• Mobile data traffic in Asia Pacific will quadruple between 2023 and 2030
• Licensed cellular IoT connections in Asia Pacific will reach 270 million by 2030
• By 2030, mobile revenues will reach $227 billion in Asia Pacific
• At the end of the decade, mobile's economic contribution will reach $1 trillion
• The fiscal contribution of the mobile ecosystem reached $90 billion in 2023 and 5G will add almost $130 billion to the Asia Pacific economy in 2030
• Satellites and non-terrestrial networks can help reduce the connectivity gap, by bringing communications to the region's challenging terrains – including archipelagos, rainforests, deserts, and mountain ranges – where traditional infrastructure is expensive and difficult to build.
• Operators across the Asia Pacific region are harnessing the power of generative AI (genAI) to drive internal transformations and seize new revenue streams through AI investment.

I appreciate how the GSMA explains that "The impact of mobile connectivity is evidenced by its contribution to the economy." For example, "In 2023, mobile technologies and services generated 5.3% of Asia Pacific's GDP, a contribution that amounted to $880 billion of economic value added, and supported around 13 million jobs across the region."

With respect to the mobile industry's impact on the UN Sustainable Development Goals (SDGs) in the region, the GSMA says the mobile industry continues to achieve its impact on SDGs "driven by the increased reach of mobile networks and growing take-up of mobile internet services. SDG 9: Industry, Innovation and Infrastructure, SDG 6: Clean Water and Sanitation and SDG 4: Quality Education were the most improved SDGs in the region between 2015 and 2022. The growing use and adoption of smartphones and mobile internet is contributing to mobile's impact on the SDGs."

Infographic: GSMA Intelligence

What do you think of the report's findings? What localized mobile services are you developing for the Asia Pacific region?

 

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

SBA's Guide Aims to Help Businesses Plan and Recover From Disasters

Image Credit:
https://shorturl.at/cLrHz

Small and medium-sized businesses are focused on solving a problem for their customer by providing a service or product of the highest quality. While most businesses are focused on growing their sales, too many are not prepared for how an immediate disaster like a hurricane, earthquake, unseasonably cold weather or a pandemic can adversely impact their operations. A new document shows how these risks could disrupt business operations and planning for them will enable owners to rebound quicker and avoid a recurrence.

In announcing the launch of its Business Resilience Guide, the U.S. Small Business Administration (SBA) says its publication serves as "a comprehensive resource for small business owners who may not be familiar with disaster preparation." The government agency whose mission is to help power the American dream of business ownership, adds that its "guide, which has six sections to plan and recover from disasters, includes best practices and template forms to help mitigate disasters for America's entrepreneurs and help them build back stronger."

The SBA's Guide correctly points out that "[w]hen disaster strikes, even the best run businesses can be impacted. According to the Federal Emergency Management Agency, about 25 percent of businesses do not reopen after disasters. Some businesses can cope with adversity better than others – they are less disrupted by an event, resume operations sooner, recover faster, and adjust for the future based on their experience. These businesses are described as resilient."

What is more, "For a small business, being resilient involves understanding risks, planning for them, identifying employee needs and responsibilities, and ensuring back-ups and redundancies are in place. This Guide can help small businesses determine how to anticipate the impacts of a disaster on operations so disruptions can be minimized."

SBA's publication leads business owners through creating a robust resilience plan, covering crucial areas such as:

• Understanding their current landscape: This involves documenting essential operations and identifying dependencies.
• Identifying key partnerships: It is crucial for seamless business continuity to recognize and nurture relationships with important vendors, suppliers, and collaborators.
• Safeguarding vital resources: The guide emphasizes the importance of data backup, cybersecurity measures, and infrastructure protection.
• Strengthening financial readiness: Strategies for managing cash flow, securing emergency funding, and minimizing financial losses.
• Embracing proactive mitigation: This section delves into strategies for minimizing the impact of potential disruptions through risk assessment and mitigation tactics.

The last section on embracing proactive mitigation also includes an overview of the SBA's post-disaster lending programs that can help business owners mitigate the effects should their business be impacted by a disaster. "SBA loans can assist with expenses related to the repair or replacement of property and can provide support for essential business operations in the aftermath of a declared disaster. These low-interest subsidized 30-year loans have 0 percent interest for the first year as well as deferred payments for the first year after the loans are disbursed."

The Guide also mentions how the SBA "offers a mitigation option as part of the post-disaster loan program that enables a property owner to increase their physical disaster loan by up to 20 percent of the verified loss (or a maximum of $500,000) to pay for interventions that will make a property more resilient in the future. Mitigation reduces a property's risk of damage from future events so people can return to their home or business more quickly after a disaster. The section on embracing proactive mitigation also includes multiple examples of hazard mitigation efforts at different price-points."

Do you find SBA's Guide useful to help your business plan and recover from disasters? What would you add?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Report Presents Current Use Cases and Election Risks of Utilizing GenAI

"Since OpenAI (US) launched ChatGPT in November 2022, AI, especially generative AI, has been driving investment for corporate entities, "According to a white paper published by The Economist Intelligence Unit (EIU). "Nvidia, Microsoft and Apple (all US) have all been racing to be the most valuable companies in the world, with Nvidia leveraging its chips, Microsoft its cloud, and Apple its iPhone and other hardware. They are all looking to create a compelling ecosystem, even though this may put them even further in the crosshairs of regulators." The report crucially asks: "is progress in AI moving the technology from an experimentation to an implementation phase?"

The report looks "at how companies have been using generative AI to date, and whether AI-generated content has had a major impact on elections so far in 2024." Key findings include:

• The launch of ChatGPT and similar services has democratized the use of artificial intelligence (AI) in many industries, and companies are now experimenting with and implementing the technology.
• The main use cases so far for generative AI have been to improve operational efficiency, enhance innovation and support customer service through using chatbots.
• Most businesses still rely on non-generative AI, however, and it remains important for them to understand the limitations of generative AI technology, such as hallucinations.
• The biggest impact in the short term will be felt during democratic elections, particularly in countries with a polarized electorate, a fragmented information ecosystem and global influence (including the US).
• As AI implementation continues, sustainability will become a major barrier, given that generative AI systems use a lot of electricity and have a large carbon footprint.

Addressing how companies are using generative AI, the report points out:

Companies in multiple industries have been experimenting with generative AI. Although the technology is new, two of the three major use cases across sectors are typical of many digital transformation strategies. The first is to improve operational efficiency, either in terms of increasing productivity or improving manufacturing and operational processes, often to cut costs. In the tech sector, this often includes using AI to speed up coding, or it can optimize internal processes such as training. Companies are also looking at technology to drive new revenue streams: generative AI is driving innovation across multiple sectors such as energy, financial services or healthcare, for example by making it easier to digest and analyze research papers. It is also used in customer services or to create better client-facing customer experiences. As the technology runs on large language models and is capable of dealing with vast amounts of text (as well as other media such as images), this is an area where development will continue across several industries, not just to interact with customers, but also for marketing purposes.

The EIU provides examples on how companies in certain sectors are using generative AI to drive innovation, efficiency and improve customer service:

• Automotive
• In-vehicle voice assistants
• Chatbots to facilitate sales leads online
• Consumer Goods
• Creating custom products
• Voice/text enabled customer service assistants
• Inventory management
• Energy
• Aiding oil and gas delivery
• Customer apps to optimize energy demand
• Financial services
• Insurers use it for underwriting
• Custom GPT based on internal data for advisors
• Cashflow management
• Healthcare
• Drug development
• Custom GPT-based database to help with research and development
• Chatbot for public healthcare

Regarding how AI-generated content can have an impact on elections, the report notes: "Generative AI is not only being integrated into the corporate world; it is also infiltrating the political world. With 2024 being a year of multiple elections, and more than 4bn people called to vote, the impact of AI-generated content (both legitimate and fake) in election campaigns is only just emerging and will only increase."

As for sustainability becoming a major barrier to AI adoption, the EIU explains that "AI will continue to be implemented in 2025, but we expect that the main focus will be on sustainability. The 2024 Electricity report from the International Energy Agency (IEA) noted that global electricity demand from data centers, driven by AI usage, could double between 2022 and 2026, adding to the grid the equivalent of Germany's national consumption. Regulators are already looking into the issue."

Moreover, "In the US, the Artificial Intelligence Environmental Impacts Act of 2024 was proposed in March 2024 to assess and mitigate the environmental impact of AI; however, it is unlikely to become law before the November 2024 elections. The EU is further ahead, with the European Commission adopting the Energy Efficiency Directive (EED) in March 2024, which Germany has already implemented into law. From September 2024 data center operators will be required to report on areas such as data volume, renewable usage or waste utilization to reduce energy consumption and carbon emissions."

I support the EIU's conclusion that "The implementation and evolution of AI will be an ever ongoing process. The technology needs to be scaled up, and proponents need to move away from overoptimistic forecasts of artificial general intelligence (AGI) happening before the end of the decade. AI does not need to be perfect to have an impact. In fact, everyone should be aware that it is not perfect, and its usage will depend on the use case and require critical human oversight."

How is your business utilizing AI?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Mobile Internet Adoption Continues to Accelerate Among Women in LMICs, But Further Action is Required to Close the Gender Gap

In its annual report that explores the latest data on the mobile gender gap, the key barriers preventing women's equal access to and use of mobile, and what is needed to close the mobile internet gender gap, the GSMA says "Mobile phones and mobile internet can be life changing, enabling people to stay connected to each other and access information and services from anywhere, including health care, education, e-commerce, financial services and income generating opportunities. In 2023, the world was more connected than ever before with more than 3.7 billion people in low- and middle-income countries (LMICs) accessing the internet on a mobile phone." Moreover, according to the report, "Mobile is the primary way people are accessing the internet in LMICs, accounting for 84% of broadband connections in 2023. This is especially true for the underserved, including women and those who live in rural areas. In 10 of the 12 countries surveyed for this report, women who use the internet are more likely than men to access it exclusively on a mobile phone."

The report points out that "Across LMICs, 83% of women now own a mobile phone, 60% own a smartphone and 66% use mobile internet. However, mobile access and use remain unequal. Women are still less likely than men to have access to mobile phones, mobile money, mobile internet and other mobile services." Disappointingly, "Women are also less likely than men to have equal use of these services, particularly the most underserved women, including those who have low literacy levels, low incomes, live in a rural area or have a disability."

The GSMA says its "latest data shows that the mobile internet gender gap narrowed from 19% in 2022 to 15% in 2023 due to women adopting mobile internet at a faster rate than men. This brings us back to where we were in 2020, but it is not yet clear whether this trend will continue. It is essential for women, and societies more broadly, that this momentum continues and the mobile gender gap continues to close."

What is more, "Addressing the mobile gender gap provides significant social and commercial benefits to individuals, societies and economies. Connectivity is vital to achieving the United Nations Sustainable Development Goals (SDGs), including those related to health, education and financial inclusion. GSMA analysis has estimated that closing the gender gap in mobile ownership and use in LMICs over an eight-year period could deliver $230 billion in additional revenue to the mobile industry. The Global Digital Inclusion Partnership estimates that 32 LMICs are on track to lose more than USD 500 billion in GDP in the next five years due to the digital gender divide."

The report importantly explains: "We know that once women start using mobile phones and mobile internet, they usually see the benefits and it improves their lives to a similar degree as men. In 2022, we found that across the 12 survey countries, most people who use mobile internet believe it has had a positive impact on their lives and use it every day, with little difference by gender."

I concur with the following assertion made by the report's authors: "Ensuring that women can access and use mobile is essential, especially in our increasingly digital world. Mobile can enable women to be more resilient in the face of economic, climate and political crises and shocks. More attention, effort and investment are needed to close the mobile internet gender gap – a goal we must continue to strive to meet so that women, their communities and society can reap the full, life-changing benefits of mobile."

The UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, presents the following recommendations for all stakeholders to close the mobile gender gap:

• Ensure there is a focus on gender equality and reaching women at an organizational and policy level through senior leaders championing the issue and setting specific gender equity targets.
• Understand the mobile gender gap by improving the quality and availability of gender-disaggregated data, and understanding women's needs and the barriers they face to mobile ownership and use.
• Explicitly address women's needs, circumstances and challenges in the design and implementation of mobile-related products, services, interventions and policies. This includes addressing the barriers women face related to affordability, knowledge and digital skills, safety and security, access and the availability of relevant content, products and services.
• Collaborate and partner with different stakeholders to address the mobile gender gap. Targeted intervention is needed from industry, policymakers, the development community and other stakeholders to ensure that women are no longer left behind.

While it is encouraging mobile internet adoption is accelerating among women in LMICs, further action is required to close the gender gap.

Do you agree with GSMA's recommendations for stakeholders to close the mobile gender gap? What would you add?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.