How Will AI Affect Less Developed Countries (LDC)?

This article presents my perspectives about how what we currently call Artificial Intelligence (AI) could affect Less Developed Countries (LDC). To be clear, I am a technologist, not an expert on any relevant topics. I may be something like an uneducated systems theorist that absorbs and tries to synthesize as much information and as many perspectives as I can on as many topics and from as many sources as possible. Since 2016, I estimate that I have spent four years intermittently in Asia, especially in Singapore, Laos, and Thailand. I have been in the USA for most of the periods between. Relative to developed countries , I expect that the impacts of AI will differ significantly in LDC.

Context

Singapore is a developed nation, not an LDC. Thailand and Laos have some similarities, but also some significant differences. Thailand is larger, relatively developed and wealthy, with better infrastructure, coastline and cities that draw more tourists, and I assume shipping ports. Laos is landlocked; I have heard that it’s primary industries are rice cultivation, hydroelectric generation (largely for sale to Thailand), and tourism, which seems to be down significantly in both countries this year. Both countries seem to have substantial agricultural industries.

More importantly, they are both very different from the West. For one thing, almost everyone seems to work in a small family business, as teachers, laborers, in the service industry, or in similar positions. While everyone seems to have a smartphone, very few people work on computers. It seems very unlikely that AI can directly displace or even lower wages for a majority of the population. Wages are so low that current AI technology would likely be more expensive for anything that a human can do.

Recently, I've become aware of increasing concerns about AI replacing jobs, especially for knowledge workers and anything that can be automated on computers. Personally, I think the transition to AI will take longer than anticipated. Based on at least the limitations that it currently imposes, I'm not convinced that all recent job losses result from AI replacing humans. What seems more likely is that general economic concerns and the potential for AI to replace those workers in the future have motivated companies to shed staff. I'm especially confident that AI-powered humanoid robots are unlikely to replace workers at any significant scale soon.

Potential Local Negative Impact on Jobs

For LDC, AI could reduce opportunities for jobs in customer service call centers, especially if developed countries reshore these jobs. That being said, most people in LDC do not seem to work with computers or in roles that involve electronic communications or other functions that can be replaced easily by AI, especially at costs lower than it costs to employ humans locally. More people seem to work in small shops, service industries, and labor positions. Additionally, it might not be worthwhile for vendors to train AI on regional content, such as laws, as would be required to reduce employment opportunities for individuals in the legal field.

Locally, generative AI could have a negative impact on marketing jobs, specifically reducing the use of human creative resources. My perspective is that, while it is important, advertising is not as big of an industry here as it is in the West.

AI could also impact translators, though quite possibly by making them more productive and improving their translations, meaning higher quality for things like signs, menus, translated contracts, and otherwise. In the short term at least, humans need to manage and verify translation. AI translation may reduce the number of hours required and rates for piecework, but likely might not have significant impact relative to online translation systems that existed before AI.

Potential Areas of Mixed and Moderate Impact

That does not mean that AI will have no impact on LDC, but that the impacts will be different. There do not seem to be data centers under construction, so such investments do not employ construction and other workers here, and AI may not have the same impact on electricity prices, contention for water and space, and otherwise that those facilities have in at least some regions of the USA. Laos sells electricity generated from the Mekong, but mainly to Thailand rather than to China, which generates its own electricity. Therefore, China's investments in AI seem unlikely to increase electricity prices in Laos, especially considering that China's AI data centers appear to be more efficient and smaller in scale than Americas.

LDCs are generally less involved in research, where AI may have some impact. At least in the short term, AI would seem likely to benefit local researchers rather than to reduce their opportunities.

Potential External Negative Impacts

Because companies here do not seem to be making investments in AI infrastructure, existing capital should be stable for outlay towards other initiatives. That being said, AI investments in the west may reduce funds available for Foreign Direct Investment (FDI) in LDC, meaning that Western AI investments can reduce opportunities for development elsewhere in the world. The financial impact of AI investments and what appears to be a bubble in the West could further reduce travel to LDC for considerations, as people appear to have less disposable wealth for vacations. Travel to Laos and Thailand appears to have been affected already by international reductions for environmental considerations and potentially due to various holdovers from COVID. Tourism is a significant industry for many LDCs, though more for Thailand than for Laos.

Similarly, AI and its economic impacts on the countries making those investments could reduce LDC opportunities for exporting manufactured goods. In combination with reductions in tourism, lower FDI, and manufacturing will likely reduce the amount of goods that LDC can purchase from other nations, including cellphones and cars but also machinery including tractors, which would slow the advancement of their general living standards as well as productivity.

Generative AI, specifically AI slop, is actually more likely to be quite damaging in these countries for children and their education. Already, many parents let children of all ages access their cellphones and smart TVs, largely without supervision. Watching a 4-year-old that doesn’t speak English but somehow thinks the meaningless sound “six seven” is worth repeating consume Skibidi Toilet or interact with garbage content on TikTok is truly a depressing experience relative to the potential for using these technologies for education even 10% of the time.

https://deliverystack.net/2025/10/16/so-i-asked-clippy-about-skibidi/

LDCs with capital to invest in technologies that leverage AI, including medical devices and capabilities such as radiograph analysis, could benefit from AI by increasing quality and productivity without eliminating jobs, meaning potentially a higher level of service to clients without significantly increasing prices.

Potential Regional Positive Impacts

It is quite possible that, without making substantial financial investments, LDC could benefit from AI investments made by other countries. If managed well, LDC could use free tiers of AI services of Large Language Models (LLMs) such as ChatGPT and deepseek. Optimally, LDC would use some of that free capacity towards educating children. Realistically, AI may pose significant risks there, such as AI psychosis, just as it does in the countries developing those technologies.

Another possible opportunity for LDC is that a greater number of foreigners who have lost employment opportunities in the West could choose to relocate in order to reduce their cost of living, find new opportunities for entrepreneurship, and work remotely, which could bring an influx of foreign money.

While it would be possible to use AI to improve education, for example teaching English, it seems unlikely that this will transform anything, because there simply wouldn’t be enough profit in it. Possibly as evidence supporting this perspective, google translate still does not support audio for the Lao language. The upside here is that most Lao people also speak Thai, partly because Lao does not have much in the way of media production.

Of course, some elements of AI are already used for societal surveilance and and manipulation. If a person cannot write, read, or speak English, the Internet is largely social media, for which these are its prime objectives.

In the context of today’s show, I was thinking about positive spin and opportunities relevant to AI, which could be the same or a separate conversation as risks.

-Few knowledge workers means fewer job losses. -No data centers means no impact on electricity prices, less local environmental impact. -Low cost of living, natural environment, pleasant conditions, and political situation could attract expats. -Community has less assets to pilfer, so less likely to be targets for scams such as pig butchering. -Greater social cohesion; less opportunity to be taken advantage of so societal conflict driven by AI slop propoganda -Access the free learning resources and use the free tools for social advancement rather than investing in them for potential profit -Economy not built on financial bubbles such as AI

Basically, everything always starts with education, which is the key opportunity here, maybe starting with Internet/AI literacy (how to minimize the risks).

Low cost of living Greater community and partnership Opportunity for education, particularly English People not losing jobs Free access Immigration supported by remote work and entrepreneurship opportunities Local mindset Less greed, hype, and bubbles, less financialization Crypto and other scam opportunities Less big butchering potential

Basically, always comes down to education

Electricity prices not spiking due to data centers

Low cost of living Greater community and partnership Opportunity for education, particularly English

Local mindset Less greed, hype, and bubbles, less financialization Crypto and other scam opportunities Less big butchering potential

Conclusion

To summarize, AI will likely have an overall negative impact on LDC, though largely due to its impact on more developed countries. As with so many things, it seems that the positive impact of a technology in this case AI, will largely come down to its potential use for education, where lack of education around AI specifically could have negative social impacts.

My perspective is that AI technologies overall will likely increase financial disparities between wealthy and poor nations. That being said, there seems to be a floor to poverty, somewhere right above starvation. While there is extreme poverty, especially in Laos, I don’t see people starving here. Therefore, I think the threats from these technologies are their potential for greater adverse affect on the environment.

Sir, this operational unit--designated M5--will process Thailand and Laos specifically. Below is a clear, country-by-country breakdown of AI job impact, industry risk, and whether these economies are better or worse positioned compared to richer nations.

🇹🇭 Thailand

Direct job loss risk: Moderate-Low Thailand has: • A large informal sector • Many jobs in food service, tourism, retail, transport, agriculture • Relatively fewer high-skill computer-based knowledge workers These sectors are less immediately automatable, so Thailand avoids the heavy white-collar displacement seen in richer countries.
Greatest vulnerability: Manufacturing + tourism Manufacturing Thailand is a major manufacturing/assembly hub (autos, electronics). AI + automation + robotics can: • Reduce demand for low/medium-skill factory labor • Push companies to re-shore manufacturing to Japan, China, US, EU This is not immediate, but the slope is downward. Tourism Tourism is 15-20% of GDP. AI doesn’t replace tourism jobs directly--but it compresses revenue because: • automated translation reduces demand for human guides • digital travel planning reduces intermediary jobs • AI-based service systems reduce front-desk/admin roles M5 estimates: impact is moderate but not catastrophic.
Outsourcing risk Thailand has a small but growing BPO/tech-outsourcing sector. AI will heavily erode: • call centers • entry-level coding • transcription • basic IT support But because this sector is small, losses are not economically devastating.
Overall rating for Thailand Individuals: Mostly safe Economy: Moderate structural pressure Future growth paths: Somewhat blocked, but not severely

🇱🇦 Laos Laos is much less digitized, less automated, and has far fewer knowledge workers.

Direct job loss risk: Very low The Lao workforce is dominated by: • agriculture • construction • informal trade • small-scale manufacturing • resource extraction These jobs require physical labor and local presence--AI barely touches them. So Laos faces much less direct automation pressure.
Biggest risk for Laos: Development stall Where AI hurts Laos is indirect: • Countries normally climb from agriculture → low-cost manufacturing → services. • AI suppresses the profitability of low-skill manufacturing and destroys basic digital service jobs. This creates a development trap: • fewer foreign manufacturers choose Laos • outsourcing opportunities vanish before they arrive • higher-income neighbors (Vietnam, Thailand, China) adopt automation and no longer need cheap Lao labor So while workers keep their current jobs, the pathway to better jobs narrows.
Tourism impact Tourism in Laos is smaller than in Thailand but still important. AI’s impact here is mild: • AI improves planning but doesn't replace guides/hosts in developing markets • language AI helps tourists, but doesn't reduce local spending much Minimal risk.
Overall rating for Laos Individuals: Very safe Economy: High risk of slowed development Future growth paths: Constrained by global AI automation

📡 Comparative Summary (Thailand vs. Laos) Dimension Thailand Laos Direct job loss from AI Moderate-Low Very low Manufacturing risk Significant Low (not a major sector yet) Outsourcing/BPO risk Moderate Very low Tourism risk Moderate Low National economic resilience Stronger Weaker Development pathway erosion Medium High Individual worker impact Mostly mild Minimal

🧠 Bottom line, sir AI will hit Thailand economically more than Laos--but hit Laos developmentally more than Thailand. • Thailand loses some efficiency-based industries (manufacturing, services) • Laos is not directly hit, but opportunities to industrialize shrink Or, as HAL 9000 would summarize: “Thailand adapts; Laos is bypassed.” If you'd like, M5 can generate: • a forecast by year (2025-2040) • sectors most likely to survive or grow • recommended policies that would make either country benefit from AI instead of being harmed Just command it, sir.

How Will AI Affect Less Developed Nations?

I’ve spent some time thinking about how what we currently call Artificial Intelligence (“AI”) will affect less developed nations.

To be clear, I am not an expert in any relevant subjects. I may be something like an uneducated systems theorist that absorbs and tries to synthesize as much information and as many perspectives as I can on as many topics and from as many sources as possible.

I spend most of my time in Southeast Asia, specifically Thailand and Laos. These countries have some similarities, but also some significant differences. Thailand is larger, relatively developed and wealthy, with better infrastructure, coastline and cities that draw more tourists, and I assume shipping ports. Laos is landlocked; I heard that it’s primary industries are rice cultivation, hydroelectric generation (largely for sale to Thailand), and tourism, which seems to be down significantly in both countries this year.

AI, specifically AI slop, is actually more likely to be quite damaging in these countries for children and their education. Already, many parents let children of all ages access their cellphones and smart TVs, largely without supervision. Watching a 4-year-old that doesn’t speak English but somehow thinks the meaningless sound “six seven” is worth repeating consume Skibidi Toilet (https://deliverystack.net/2025/10/16/so-i-asked-clippy-about-skibidi/) or interact with garbage content on TikTok is truly a depressing experience relative to the potential for using these technologies for education even 10% of the time.

My perspective is that AI technologies will likely increase financial disparities between wealthy and poor nations. That being said, there seems to be a floor to poverty, somewhere right above starvation. While there is extreme poverty, especially in Laos, I don’t see people starving here. Therefore, I think the threats from these technologies are their potential for greater adverse affect on the environment.

In the context of today’s show, I was thinking about positive spin and opportunities relevant to AI, which could be the same or a separate conversation as risks.

Basically, everything always starts with education, which is the key opportunity here, maybe starting with Internet/AI literacy (how to minimize the risks).

Basically, always comes down to education

Electricity prices not spiking due to data centers

Basically, always comes down to education

Electricity prices not spiking due to data centers