Why emerging markets are the future of AI innovation

In Lagos, the heart of Africa’s burgeoning tech ecosystem, the future of artificial intelligence (AI) is taking shape. Earlier this year, JADA, a data and analytics talent hub, secured $1 million in funding to train the next generation of AI professionals across the continent.

Similarly, ten Nigerian startups, including BetaLife Health and Farmspeak, received ₦100 million each from a ₦2.8 billion government fund to accelerate AI-powered innovation, with additional support from Google Cloud. These milestones are not just headlines—they signify that emerging markets like Nigeria are becoming pivotal players in AI innovation, addressing unique challenges and uncovering opportunities that established tech hubs often overlook.

Globally, AI has become synonymous with innovation, with traditional leaders like the US, UK, and China driving progress. The global AI market reflects this: projected to grow from $4.92 billion in 2024 to $16.53 billion by 2030 at an annual rate of 27.43%. Startups such as Cohere, which builds multilingual language models and recently secured $500 million at a $5.5 billion valuation, epitomize the rapid advancements in established markets.

However, a transformative shift is underway: emerging markets are stepping up to play a significant role in the AI revolution.

A Shift Towards Emerging Markets

Emerging markets are becoming AI innovation hubs driven by unique challenges, diverse datasets, and evolving technology ecosystems. In regions like Africa, startups such as Farmspeak are using AI to revolutionize agriculture, solving urgent, real-world problems like food security. This emphasis on practical, necessity-driven solutions positions emerging markets as key contributors to the global AI landscape.

As a self-taught software engineer leveraging AI for business growth, I’ve witnessed how limited resources foster creative problem-solving. Innovation here is born of necessity—we build solutions tailored to pressing challenges rather than pursuing abstract concepts. This approach isn’t just reactive; it’s reshaping global AI. African developers, entrepreneurs, and startups aren’t merely adopting AI—they’re redefining its capabilities, proving that resourcefulness and ingenuity are just as critical as funding and infrastructure.

Local Challenges, Global Impact

Emerging markets excel at transforming local obstacles into global opportunities. For instance, Intron Health’s AI-driven speech recognition technology is revolutionizing healthcare delivery, while platforms like Pharmarun ensure timely access to medications. In agriculture, Kitovu applies AI to optimize farming practices, addressing food security challenges that resonate worldwide. These innovations, though localized, are scalable and hold global relevance.

Diverse datasets are another key advantage.

Emerging markets provide a wealth of underrepresented data—from indigenous languages to varied socioeconomic patterns—that enhance the inclusivity and applicability of AI systems globally. By training AI on these datasets, developers can create solutions better suited to a diverse range of users and use cases.

Building Ecosystems and Overcoming Barriers

The talent pool in emerging markets is expanding rapidly. Self-taught engineers, supported by incubators, tech hubs, and innovation programs, are developing AI solutions in dynamic environments. Governments are also stepping in—Nigeria’s National Information Technology Development Agency (NITDA), for example, has launched grants for AI research and development, while hubs like Lagos’s CCHub provide mentorship and platforms for scaling startups.

However, challenges remain. Limited funding, unreliable infrastructure, and the brain drain hinder the growth of emerging market AI ecosystems. To overcome these barriers, governments and private stakeholders must prioritize investments in local talent and infrastructure.

Collaborative partnerships with global tech firms can provide much-needed mentorship, funding, and resources to accelerate innovation.

Retaining talent is another critical factor.

Competitive opportunities, pathways for returning diaspora professionals, and supportive ecosystems are essential for ensuring that emerging markets not only cultivate but retain the talent needed to lead in AI.

A Global Vision for AI

The contributions of emerging markets to AI are not just reshaping their local industries; they’re driving global progress. Innovators in these regions bring unique perspectives born of resource constraints and resilience, fostering solutions that balance creativity with practicality. For example, at Valley, my work with generative AI to enhance sales processes aligns with a broader vision of using AI to create efficiency across industries like healthcare, education, and business operations.

The global AI ecosystem has much to learn from the innovation and adaptability of African tech. The resourcefulness—our “hustle” mentality—demonstrated in these markets can inspire new approaches to problem-solving worldwide. By bridging ecosystems, emerging markets and established tech hubs can collectively accelerate progress, ensuring that AI innovation benefits all.

Final Thoughts

Emerging markets like Africa are poised to shape the future of AI innovation through necessity-driven creativity, diverse datasets, and a growing pool of resourceful talent. By addressing structural barriers and fostering collaboration between local and global stakeholders, these regions can unlock their full potential, driving progress on a global scale.

Samuel Olamide is a self-taught software engineer from Nigeria with a strong track record in AI and tech entrepreneurship. Currently a founding engineer at Valley, he has played a pivotal role in building the company’s AI-powered sales automation platform, securing $2 million in pre-seed funding. Samuel’s work focuses on using generative AI to solve real-world challenges in sectors like healthcare, sales, and education.