Bangladesh must seize AI opportunities amidst global rivalry
The rivalry between America and China regarding artificial intelligence (AI) is growing, with both nations significantly investing in the technology. Historically, AI development has been dominated by America, but China is closing in at a rapid pace. One such example is the emergence of DeepSeek, a Chinese AI startup that has created AI models capable of competing with those from the Silicon Valley. DeepSeek also made their product accessible through an open-source model. This competition has profound implications for technology, economies, and politics worldwide.
Bangladesh—a developing economy, must strategically position itself in the AI race to fully harness its potential for technological transformation, economic growth, and innovation.
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The US holds a dominant position in AI development, commercialisation, and research worldwide. Leading US-based tech companies—such as OpenAI, Google DeepMind, and Meta have pioneered AI development, creating models like ChatGPT, Gemini, and Llama. Recognising AI's strategic value, the US government has invested significantly in AI-driven national security and economic competition.
China got advanced AI through state-backed initiatives, focusing on industrialisation and national security applications. Tech giants like Tencent, Alibaba, and Baidu have built powerful AI models—such as ERNIE and Qwen 2.5 Max. DeepSeek challenges Silicon Valley's dominance with lower costs. As competition intensifies, countries like Bangladesh must navigate the evolving AI landscape.
Bangladesh's current AI landscape
In an effort to embrace AI, Bangladesh introduced the National Artificial Intelligence Policy 2024, which aims to guide AI development through research, education, and ethical implementation. While the policy lays a foundation for AI adoption, significant gaps remain in infrastructure, vision, and execution. The private sector and startups have shown interest in AI, but a lack of funding and computing resources remains a major hurdle.
AI is gradually being integrated into key sectors of Bangladesh's economy. In healthcare, AI-driven diagnostics and predictive analytics are being explored to improve patient outcomes. The agricultural sector is benefiting from AI-powered precision farming and pest control strategies. Financial institutions are leveraging AI for fraud detection and customer analytics, while the manufacturing industry is experimenting with automation, albeit at a relatively low scale. Despite these advancements, businesses are still having to rely on foreign AI models, which increases operational costs and limits data sovereignty.
Challenges hindering Bangladesh's AI growth
One of the biggest challenges Bangladesh faces is that without domestic AI capabilities, Bangladesh remains vulnerable to external market fluctuations and pricing structures dictated by foreign providers.
Another major hurdle is the lack of infrastructure. Bangladesh currently has no large-scale AI data centres, forcing researchers and companies to rely on expensive cloud computing services from AWS, Google Cloud, and Microsoft Azure. The absence of high-performance computing (HPC) infrastructure slows down AI research and limits local innovation.
Additionally, Bangladesh faces a shortage of skilled AI professionals. The country's top talents tend to migrate abroad in search of better opportunities, leading to brain drain. While local universities offer AI-related courses, AI research has yet to be fully integrated into their core curriculum. Without a strong pipeline of AI-related talent, Bangladesh will struggle to build a self-sufficient AI ecosystem.
Opportunities for Bangladesh amidst the AI rivalry
Despite these challenges, Bangladesh has several opportunities to establish itself as a competitive player in this sector. One promising approach is leveraging open-source AI models such as DeepSeek's V3 and R1, Meta's Llama, Mistral, and Falcon and others. Open-source AI models offer greater flexibility, cost efficiency, and data sovereignty, reducing the country's reliance on expensive proprietary systems from global AI leaders.
Another crucial step for Bangladesh is developing its own AI foundation model trained in Bangla and regional datasets. By creating localised AI models, Bangladesh can address the needs of local businesses, government agencies, and educational institutions. A home-grown localised foundation model would enable the country to build AI applications tailored to its unique economic and linguistic landscape, reducing dependence on foreign technology.
To make these initiatives viable, investing in local AI data centres is essential. Establishing AI infrastructure would lower computing costs, making AI adoption more accessible for businesses and startups. Local AI data centres could also attract companies seeking affordable, regionally hosted AI solutions, creating new economic opportunities.
Policy recommendations for strengthening Bangladesh's AI ecosystem
To accelerate AI growth, the government must increase funding for AI research and introduce AI-specific grants and tax incentives for startups. By investing in AI innovation, Bangladesh can stimulate local development and attract foreign investment.
Educational institutions must play a crucial role in this transformation by collaborating with industry leaders to develop AI-focused research programmes. The government should also establish dedicated AI research institutions that focus on cost-effective, scalable AI solutions tailored to Bangladesh's needs.
Public-private partnerships will be key to advancing AI development. The government should foster collaboration between academia, businesses, and policymakers to create a cohesive AI ecosystem. Regulatory sandboxes should be introduced, allowing AI startups to test their models with minimal bureaucratic restrictions.
Another critical step is implementing data localisation laws to ensure that sensitive data is stored within Bangladesh, reducing security risks and enhancing data sovereignty. Additionally, strong AI governance frameworks should be developed to prevent unethical AI use and ensure responsible AI deployment.
Despite lacking AI infrastructure and skilled professionals, Bangladesh can establish a unique role in the global AI arena. This will be a technological leap with economic imperative for future competitiveness.
Rashedul Huq is research associate at North South University.
Views expressed in this article are the author's own.
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