AI and global divide: Will it widen the gap or bridge it?

Only time will tell whether AI is a leap forward in our evolution or a step toward unforeseen dangers

Artificial intelligence (AI) is upending the world at a pace far exceeding the impact of the wheel’s invention in Mesopotamia around 4000 BC on human civilisation. It is reshaping economies, industries, social hierarchies, politics, and even relationships—many of which have remained largely unchanged for at least the past 75 years.

Whether we accept it or not, it is clear that AI will truly dominate the world’s agenda in the foreseeable future. The AI race among the world powers has already begun. As of now, the United States remains at the top of the AI hierarchy, while the world’s second largest economy, China, is in a catching up mode to challenge America’s undisputed AI leadership. In 2017 the ruling Chinese Communist Party (CPP) declared “AI as the driving force” of the vast country’s progress. Chinese companies are pouring billions of dollars into AI development, and with the recent unravelling of DeepSeek, it is clear that such investments, along with state backing, are bearing excellent results. 

Europe, including the United Kingdom, which appears to be focusing more on regulating than developing AI, holds the third place in the AI hierarchy, whereas India, the world’s most populous country, lags behind in a distant fourth place. What about developing countries like Sri Lanka, which are the majority? Where exactly are we in this AI race?

Winners and losers

As with any new technology or invention, AI will create both winners and losers. However, unlike most past innovations, the gap between them is expected to be vast. While there is no doubt that AI will unlock new opportunities for the advancement of human civilisation, it will come at a cost. It is likely to widen the divide between the haves and have-nots in an already polarised world. AI could very well become the next great force of division on a global scale. 

Although nuclear power could be a major divider, the few countries that possess such weapons have so far exercised great caution in using them, given their mutually destructive potential. And the triggers of these weapons are literally in the hands of governments. But in the case of AI, the advancement and the control of this technology is with private individuals or parties. These tech elites, who have already amassed massive amounts of money and power with the advent of the Internet, are now likely to become even more powerful with AI. Interestingly, the governments up to now haven’t figured out how to regulate or bring controls on advanced AI technologies developed by these private corporations. Some even suggest AI could give rise to a modern-day gilded age, where the wealth gap widens, and the rich and powerful become even more entrenched in their dominance.

From my perspective as a Sri Lankan banker, I have witnessed firsthand how AI is reshaping the financial landscape—both internationally and locally—albeit at different scales. While it presents new opportunities and possibilities, it also introduces significant risks and challenges. So the real question is, “Will AI help bridge the gaps between nations and people, or will it push us even further apart?” 

As with any new technology or invention, AI will create both winners and losers. However, unlike most past innovations, the gap between them is expected to be vast. While there is no doubt that AI will unlock new opportunities for the advancement of human civilisation, it will come at a cost. It is likely to widen the divide between the haves and have-nots in an already polarised world. AI could very well become the next great force of division on a global scale

The AI haves and have-nots

The race for AI dominance is far from fair. To protect its AI supremacy, the United States has launched what is called a “chip war” on China, restricting that country’s access to advanced microchips through export controls, sanctions and international alliances, which are essential for developing advanced AI capabilities. However, despite all the restrictions, China was able to stun the United States with DeepSeek, prompting some to call it the second ‘Sputnik moment’ for the world’s biggest and most powerful economy.

While these nations battle for AI dominance, reminiscent of the Cold War nuclear race, many developing countries, like Sri Lanka, are still struggling to integrate basic AI-driven automation in crucial sectors such as banking, healthcare, transportation, governance, etc.

This growing gap means that the economic benefits of AI will likely go to those who are already ahead in the race. Countries with the ability to create and control AI will shape the future of work, finance, and trade, while others—those without AI capabilities—will have no choice but to adopt technologies they had no hand in developing. This could result in a new kind of economic dependency, where developing nations are reduced to mere consumers of AI, rather than active innovators in the field. The dominance of closed-source AI models, owned by large corporations, will further intensify this gap, limiting opportunities for broader innovation. 

The rise of AI-driven inequality

AI is poised to revolutionise the global economy, but the big question is, “Who’s going to benefit?” In developed countries, AI is already being used to boost productivity, automate industries, and create high-value jobs. Meanwhile, many developing nations still rely on labour-intensive sectors that are at risk of being replaced by AI-driven automation.

Take banking, for instance. AI is transforming financial services, making credit assessments quicker and fraud detection smarter. But in a country like Sri Lanka, where many still depend on traditional banking methods, the impact of AI could go two ways. Will AI make financial services more accessible and inclusive, or will it deepen the divide between tech-savvy customers and those who are left out of the digital revolution? If AI decision-making relies on global datasets that don’t consider local realities, could it unintentionally disadvantage developing economies like Sri Lanka? The answers to these questions could determine whether AI helps bridge or widen the inequality gap.

Some people see AI as the next step in human evolution, a natural extension of our ability to use tools like fire, the wheel, or computers, to advance. Yet, others fear that AI doesn’t represent progress, but rather a threat to humanity. Only time will tell whether AI is a leap forward in our evolution or a step toward unforeseen dangers, as we increasingly entrust machines with control over critical aspects of our lives.

It is clear that AI has the power to unite or divide. It has the potential to create fairer financial systems, enhance governance, and spark innovation, but it also risks deepening inequalities, fuelling global conflicts, and spreading misinformation. As AI advances, the question is whether we’ll use it to build a more balanced and inclusive world or let it divide us further. For countries like Sri Lanka, the key lies in embracing smart AI policies, forming strong partnerships, and pushing for technological independence. 

Importance of having our own AI strategy

Whatever the case it may be, as a developing nation, Sri Lanka can’t afford to sit on the sidelines in the AI revolution. But we also can’t blindly adopt AI models designed by others without considering our unique challenges. We need a clear, independent AI strategy—one that ensures we benefit from AI advancements while protecting our economic and political sovereignty. President Anura Kumara Dissanayake, who also serves as the Minister of Digital Economy, has already appointed a 10-member national AI advisory committee to design the country’s AI strategy. The committee consists of top figures from Sri Lanka’s AI and ICT industries, including Dr. Harsha Subasinghe, Dr. Romesh Ranawana, and Prof. Asoka Karunanada. Also, the success of the digitisation push of the new Government remains critical to set Sri Lanka on the AI path.

Although Sri Lanka may not be able to directly compete with global AI superpowers, its AI agenda should focus on leveraging AI pragmatically to drive economic growth and enhance the country’s competitiveness.

For instance, Sri Lanka should seriously explore how AI can modernise agriculture and strengthen the competitiveness of its manufacturing sector. Another key area of focus should be governance and public services, where AI can improve efficiency while reducing corruption. A prime example would be the use of AI-driven automation to streamline public sector operations. Additionally, deploying AI in healthcare and education could significantly enhance service delivery and accessibility.

Building an AI-ready workforce is also crucial for Sri Lanka to remain relevant in a world increasingly defined by AI. Schools and universities should integrate AI courses into their curricula, while upskilling professionals in AI applications is equally important.

Furthermore, Sri Lanka should actively seek collaborations in the AI field and develop policies that encourage foreign investment in AI research and development. This way the country not only could avoid the risk of being passive in the face of AI-driven technological advancements happening in the world, but also will be able to punch above its weight in the global AI landscape. 

AI will no doubt shape the future of finance, trade, global influence and every other facet of human existence. If we don’t take control of our AI destiny, we risk becoming just another data point in someone else’s algorithm.

(The writer is the CEO/GM of People’s Bank. The views expressed here are the writer’s own and do not reflect those of the institutions he represents.)