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The AI divide

The technology meant to democratise the world could end up dividing it

August 14, 2025

8 min read

August 14, 2025

8 min read

Photo: Dreamstime.

In Davos this winter, tech executives waxed lyrical about the democratising potential of artificial intelligence (AI). But across the world, millions of people worry about how they will pay their children’s school fees, and internet access remains a luxury many simply can’t afford. The distance between these two realities captures the central paradox of our age: as AI promises to unite humanity, it risks creating a divide as wide as any ocean.

The UN warns that 2.6 billion people still lack basic internet access, while AI is projected to become a 4.8 trillion US dollars market by 2033. This isn’t just another digital divide—it’s potentially something far more entrenched. Where previous technologies eventually trickled down to the masses (mobile phones now outnumber people in many developing countries), AI presents steeper barriers to entry. It demands not just connectivity but computational literacy, quality data, and significant processing power.

The result threatens to encode today’s inequalities into tomorrow’s algorithms.

The new mathematics of exclusion

Walk into any corporate boardroom in Manhattan or Mayfair, and you’ll hear breathless talk of AI transformation. The reality is more prosaic. While 78 per cent of companies claim to use AI, the devil lurks in the details. Large corporations are systematically outpacing smaller rivals in meaningful AI adoption.

The concentration of power tells the real story. Just 100 companies—overwhelmingly American and Chinese—control 40 per cent of global AI research and development spending. Meanwhile, 118 countries find themselves entirely excluded from global AI governance discussions. It’s akin to writing international maritime law while ignoring every landlocked nation.

For individual workers, the arithmetic is even less forgiving. Take America, where Black workers are 10 per cent more likely to hold jobs vulnerable to AI automation, yet remain underrepresented in the technical fields creating these systems. Women face similar contradictions—more exposed to AI-driven workplace changes but equipped with fewer relevant skills. The technology meant to augment human capability may instead amplify human disadvantage.

When robots come for the middle class

Previous automation waves targeted blue-collar work. AI takes a different approach, going after cognitive labour—the very jobs that parents urge children to pursue for economic security. Paralegals reviewing contracts, radiologists reading scans, financial analysts crunching numbers: all find their expertise increasingly replicable by algorithms.

The transition isn’t uniformly grim. Most small businesses using AI report it enhances rather than replaces workers, with staff reporting 80 per cent productivity improvements. The crucial difference lies in positioning: are workers AI’s partners or its replacements?

But partnership requires access and understanding. During recent focus groups in London, officials asked participants: “Are you concerned AI will impact your job?” The response was telling: “I don’t know, should I be?” This encapsulates the challenge—millions lack basic awareness of AI’s implications for their livelihoods.

Corporate Darwinism, Silicon Valley style

In business, AI creates new hierarchies based not on traditional advantages but on data quality, computational resources, and technical talent. But while McKinsey’s research reveals a telling pattern (large organisations systematically outperform smaller ones in AI adoption practices), there is a twist.

Distribution resembles a barbell. Large corporations (7.2 per cent adoption rate) and small businesses (5.5 per cent) use AI more than medium-sized companies. The giants afford comprehensive strategies; the minnows benefit from accessible tools. Those in between—lacking resources and agility—get squeezed.

This matters because AI could add trillions of US dollars to annual global output. Benefits will flow disproportionately to early adopters. Companies ignoring AI risk joining the ranks of businesses that dismissed the internet in the 1990s—not immediately obsolete but progressively irrelevant.

The talent shortage exacerbates these dynamics. While 73 per cent of employers prioritise AI hiring, 75 per cent complain of inadequate candidate pools. This bidding war primarily benefits those already working at well-funded firms in major tech hubs.

The geography of algorithmic advantage

Location increasingly determines AI access. Economic projections suggest China will capture seven trillion US dollars in AI-driven GDP gains by 2030, North America 3.7 trillion US dollars. For the rest of the world, including Europe, the projections look less promising.

Infrastructure gaps tell part of the story. Sub-Saharan Africa’s internet penetration sits below 30 per cent, compared to North America’s 80-plus per cent. Without basic connectivity, AI discussions remain academic. Even where internet exists, slow speeds, expensive data, and unreliable power limit meaningful access.

Data representation creates deeper problems. AI systems trained predominantly on Western datasets often fail to reflect Global South realities—languages, cultural contexts, economic patterns. The Global Digital Inclusion Partnership highlights how this creates AI that works brilliantly for Silicon Valley engineers but poorly for Kenyan farmers or Bangladeshi merchants. Try asking ChatGPT some simple questions in Swahili: the answers will be shorter and far less relevant than those for English, French, Mandarin.

Algorithmic bias compounds these issues. The National Institute of Standards and Technology tested 189 facial recognition systems in 2019, finding systematic discrimination against darker-skinned individuals. When such systems influence hiring, lending, or policing decisions, they don’t merely inconvenience—they institutionalise disadvantage.

Building bridges

The AI divide isn’t immutable. Thoughtful programmes worldwide demonstrate that strategic intervention can democratize access.

The World Economic Forum’s EDISON Alliance provides a compelling model. Since launching, it has connected over one billion people to essential digital services across healthcare, education, and finance in more than 100 countries. By coordinating public and private resources, the alliance creates digital infrastructure foundations necessary for AI participation.

American historically black colleges and universities (HBCUs) offer another template. Morehouse College’s ‘AI in Basketball’ course, developed with industry partner Stats Perform, has expanded across HBCUs. Such initiatives don’t merely train future AI practitioners—they ensure diverse perspectives shape AI development from the ground up.

The nonprofit internXL demonstrates scalable solutions, offering free AI certifications and connecting students with industry mentors. These programmes share a crucial insight: bridging the AI divide requires more than access—it demands creating meaningful participation pathways.

Policy responses

Governments grapple with shaping AI development while avoiding past technological transition mistakes. Approaches vary dramatically—from Europe’s comprehensive regulation to China’s state direction to America’s market orientation.

Britain’s AI Opportunities Action Plan illustrates one promising direction. Proposed AI Growth Zones would offer enhanced power access and streamlined planning approvals to accelerate infrastructure development. Combining incentives with clear frameworks could help democratise AI capabilities.

International coordination remains essential. International Labour Organisation recommendations emphasise technology transfer, infrastructure investment, and social dialogue protecting workers’ rights. Yet policy often lags technology, with most Global South nations excluded from governance discussions shaping AI’s future.

Addressing the AI divide requires coordinated action across multiple dimensions. Infrastructure investment remains foundational—a 10 per cent broadband penetration increase can boost developing economy GDP growth by 1.4 per cent, providing platforms for AI applications.

Education must evolve beyond computer literacy toward AI literacy. UNESCO’s call for action emphasises community-driven, culturally relevant programs rather than one-size-fits-all solutions developed in distant laboratories.

AI development itself needs democratisation. This means diverse datasets, inclusive design processes, and governance structures incorporating affected community voices. The technology should uplift rather than entrench disadvantage.

International cooperation must transcend voluntary initiatives toward binding commitments on technology transfer, capacity building, and equitable benefit distribution. Otherwise, AI advantages will concentrate among the already privileged—a profound failure of technology and policy.

Business leaders must recognise that bridging the AI divide serves economic as well as social interests. Markets function best with maximum participation; AI systems improve when reflecting diverse experiences and needs.

High digital stakes

The AI revolution unfolds within existing inequality patterns. Left unchecked, market forces seem likely to amplify rather than diminish disparities. Technology promising to augment human intelligence could instead create an aristocracy of the algorithmically advantaged.

Outcomes aren’t, however, predetermined. Previous technological revolutions—railways, telecommunications, the internet—ultimately proved broadly beneficial despite creating temporary disruptions. The key was deliberate action ensuring benefits reached beyond early adopters to society at large.

AI’s impact depends on how we design, implement, and regulate it. Decisions made in coming years about infrastructure investment, educational priorities, regulatory frameworks, and international cooperation will determine whether AI promotes equality or division.

With AI projected to become a market roughly equivalent to the size of Germany’s economy, the question isn’t whether transformation will occur but whether benefits will spread broadly or concentrate narrowly. This depends on whether leaders choose to build bridges across the AI divide or allow it to calcify into permanent global architecture.

The dream of AI democratising human capability remains achievable. But realisation requires more than algorithms and infrastructure and endless new releases of chat models—it demands wisdom, deliberate action, and commitment to ensuring technological progress serves all humanity, not just those fortunate enough to be algorithmically advantaged.

The choice, for now, remains ours. But that particular window will not stay open for much longer.

Photo: Dreamstime.

Reinvantage Insight

Reinvantage Insight

The byline Reinvantage Insight is used to denote articles to which several members of the Reinvantage insight and analysis team may have contributed.

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Case study: Global technology company

1. The Client

A global technology company operating across EMEA, with a regional HQ in Istanbul. The company manages 20+ markets, handling everything from brand campaigns to strategic partnerships.

Role we worked with: The EMEA Head of Marketing (supported by two regional managers).

2. The Challenge

Despite strong products and a respected global brand, the regional team was struggling with:

  • Misaligned strategy across markets → campaigns executed with inconsistent narratives.
  • Slowed growth → lead generation plateaued despite increasing spend.
  • Internal friction → marketing, sales, and product teams disagreed on KPIs and priorities.

Traditional fixes (more meetings, more reporting) only created more noise.

3. The Sprint

We ran a 10-day Remote Reinvention Sprint with the regional HQ team.

  • Day 1–3: Intake → Reviewed decks, campaign data, and plans.
  • Day 4: Sprint Session (90 mins) → Breakthroughs:
    • Sales and marketing had different definitions of “qualified lead.”
    • 40% of spend was going into low-potential markets.
    • The team assumed the problem was lack of budget, but it was actually lack of alignment.
  • Day 5–10: Synthesis → Insights distilled into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint uncovered that the issue wasn’t budget, but fragmentation.
Three sharp insights unlocked a way forward:

  1. Unified KPIs bridging marketing + sales.
  2. Market prioritisation → shifting budget to 5 high-potential markets.
  3. Simplified narrative → one EMEA core story, locally adaptable.
By just realigning resources and focus, the client could unlock an estimated £250,000 in efficiency gains within the next 12 months — far exceeding the Sprint’s value guarantee. The path to higher returns was already inside the business, hidden by misalignment.
5. From Sprint to Action (4 Pillars Applied)

With clarity secured, Reinvantage didn’t suggest “more projects.”

Instead, we used the Sprint findings to create laser-focused next steps — drawing only from the areas that would deliver the most impact:

  • Readiness → Alignment workshops for sales + marketing teams. New playbooks clarified “qualified lead” definitions and reduced internal disputes.
  • Foresight → A market-opportunity scan identified which 5 countries would deliver the highest ROI, removing the guesswork from allocation.
  • Growth → Guided the reallocation of €2M budget and designed a phased rollout strategy that protected risk while maximising return.
  • Positioning → Built a messaging framework balancing global consistency with local nuance, ensuring campaigns spoke with one clear voice.

Because the Sprint had stripped away noise, these actions weren’t generic consulting ideas — they were directly tied to the breakthroughs.

6. The Results
  • +28% increase in qualified leads across the region.
  • 30% faster campaign rollout due to streamlined approvals.
  • Budget efficiency gains → €2M redirected from low-return to high-potential markets.
  • Internal cohesion → marketing + sales now use a single shared dashboard.
The client came in believing they needed more budget.
The Sprint revealed that what they really needed was clarity and alignment.

With that clarity, the four pillars became not theory, but practical tools to deliver measurable impact.

The Sprint guaranteed at least £20,000 in value — but in this case, it helped unlock more than 10x that within six months.

Case study: Regional VC fund & accelerator

1. The Client

A regional venture capital fund and accelerator focused on early-stage tech start-ups in the Baltics and Central Europe.

The fund had raised a new round and was under pressure to deliver stronger returns while also building its reputation as the go-to platform for founders.

Role we worked with: Managing Partner, supported by the Head of Portfolio Development.

2. The Challenge

Despite a promising portfolio, results were uneven.

Key issues:

  • Scattered portfolio support → no consistent playbook for start-ups, every partner did things differently.
  • Weak differentiation → founders and co-investors saw the fund as “one of many” in the region.
  • Stretched team → too many small bets, not enough clarity on which companies to double down on.

The leadership team knew something was off, but disagreed on whether the issue was pipeline quality, market conditions, or internal capacity.

3. The Sprint

We ran a 10-day Remote Reinvention Sprint with the partners and portfolio team.

  • Day 1–3: Intake → Reviewed pitch decks, pipeline funnel data, and start-up performance reports.
  • Day 4: Sprint Session (90 mins) → Breakthroughs:
    • No shared definition of a “high-potential founder.”
    • Support resources were spread too thin across the portfolio.
    • The fund’s positioning was more reactive than proactive — it didn’t own a distinctive narrative in the market.
  • Day 5–10: Synthesis → Insights consolidated into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint revealed that the challenge wasn’t pipeline quality — it was lack of focus and positioning.

Three core insights provided the turning point:

  1. Portfolio Prioritisation Framework → defined clear criteria for where to double down.
  2. Founder Success Playbook → standardised support model for portfolio companies.
  3. Differentiated Narrative → repositioned the fund as “the accelerator of reinvention-ready founders.”
These shifts alone gave the fund a path to add an estimated £2M+ in portfolio value over the following 18 months, by concentrating capital and resources where they could move the needle most.
5. From Sprint to Action (4 Pillars Applied)

With clarity from the Sprint, Reinvantage created a tailored support plan:

  • Readiness → Coached partners on using the new prioritisation framework and trained the team on deploying the Founder Success Playbook.
  • Foresight → Ran scenario analysis on regional tech trends, helping the fund anticipate where capital would flow next.
  • Growth → Guided resource reallocation across the portfolio and supported new co-investor pitches for top-performing start-ups.
  • Positioning → Crafted a sharper brand story for the fund, positioning it as the reinvention partner for globally minded founders.
6. The Results
  • 10 portfolio companies onboarded to the new Playbook → greater consistency of support.
  • Raised follow-on capital for 3 top start-ups with the new prioritisation framework.
  • +26% increase in inbound deal flow from founders citing the fund’s new positioning.
  • Stronger internal cohesion → partners aligned on where to focus resources.
The client thought the problem was pipeline quality.
The Sprint showed it was actually lack of clarity and focus inside the firm.

By applying the four pillars, Reinvantage helped turn scattered effort into concentrated value creation.

The Sprint guaranteed at least £20,000 in value; here it set the stage for multi-million-pound upside in portfolio growth.

Case study: International impact Organisation

1. The Client

A large international impact organisation focused on entrepreneurship and economic empowerment.
The organisation runs multi-country programmes across Eastern Europe and Central Asia, often in partnership with global donors and corporate sponsors.

Role we worked with: Senior Programme Director, responsible for regional coordination.

2. The Challenge

The organisation had launched a flagship regional initiative supporting women entrepreneurs, but the programme was underperforming.

Key issues:

  • Fragmented delivery → each country office interpreted the programme differently.
  • Donor frustration → reporting lacked consistency and clear impact metrics.
  • Lost momentum → staff energy was spent on administration rather than scaling success stories.

Traditional programme reviews had produced long reports, but no real alignment or action.

3. The Sprint

We ran a 10-day Remote Reinvention Sprint with the regional leadership team and representatives from two country offices.

  • Day 1–3: Intake → Reviewed donor reports, programme KPIs, and field feedback.
  • Day 4: Sprint Session (90 mins) → Breakthroughs:
    • Donors cared about quantifiable outcomes, but reporting focused on stories.
    • Staff were duplicating efforts across countries, wasting time and resources.
    • The initiative lacked a clear theory of change — everyone described its purpose differently.
  • Day 5–10: Synthesis → Insights distilled into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint revealed that the issue wasn’t donor pressure or programme design — it was a lack of shared framework and alignment.

Three critical insights reshaped the path forward:

  1. One Unified Theory of Change → agreed narrative for why the programme exists.
  2. Core Impact Metrics → clear, comparable KPIs across all countries.
  3. Smart Resource Sharing → digital hub to stop duplication and accelerate knowledge flow.
By eliminating duplicated reporting and clarifying what success looks like, the client saw they could save the equivalent of £100,000 in staff time annually — while also unlocking stronger donor confidence and follow-on funding opportunities.
5. From Sprint to Action (4 Pillars Applied)

Armed with Sprint clarity, Reinvantage proposed a laser-focused support plan:

  • Readiness → Trained programme leads on using the new metrics and integrated them into existing workflows.
  • Foresight → Analysed donor trends and expectations, aligning the initiative with the next funding cycle.
  • Growth → Developed a funding case based on the new unified theory of change, securing higher renewal chances.
  • Positioning → Crafted a regional success narrative and storytelling toolkit, helping them showcase results consistently across markets.
6. The Results
  • 30% less time spent on reporting → freed capacity for programme delivery.
  • Donor satisfaction improved → positive feedback on the clarity of impact evidence.
  • Secured new funding commitment → one major donor increased their contribution by 20%.
  • Stronger internal morale → staff felt they were working with clarity, not chaos.
The client thought it needed better donor management.
The Sprint revealed it needed a shared foundation across its teams.

By anchoring on the four pillars, Reinvantage turned alignment into efficiency gains and fresh funding opportunities.

The Sprint guaranteed at least £20,000 in value; here it unlocked both six-figure savings and future-proofed funding.

Case study: National digital development agency

1. The Client

A national digital development agency tasked with driving the government’s digital transformation agenda, including e-services, citizen portals, and smart city pilots.

Role we worked with: Director of Digital Transformation, supported by IT and service delivery leads from three ministries.

2. The Challenge

The agency had strong political backing but faced hurdles in implementation.

Key issues:

  • Siloed projects → each ministry developed digital tools independently, leading to duplication.
  • Citizen frustration → services were digital in name, but still required multiple logins and offline steps.
  • Funding pressure → international partners demanded clearer impact in the short term.

The agency wanted to accelerate momentum but struggled to get alignment across ministries.

3. The Sprint

We ran a 14-day Immersive Reinvention Sprint with the agency’s leadership and digital focal points from three ministries.

  • Day 1–3: Intake → Reviewed strategy docs, donor reports, and citizen feedback data.
  • Day 4: Immersive Sprint Session (half-day) → Breakthroughs:
    • Each ministry had different definitions of “digital service.”
    • 20% of budget was going into overlapping pilot projects.
    • Citizens’ top frustrations were known — but not prioritised.
  • Day 5–14: Synthesis → Insights consolidated into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint revealed that the biggest blocker wasn’t lack of funding, but lack of shared priorities.

Three practical insights stood out:

  1. One Definition of Digital Service → agreed across ministries.
  2. Quick-Win Prioritisation → focus on top 3 citizen pain points (ID renewal, business registration, healthcare booking).
  3. Shared Resource Map → pool budgets to eliminate duplication.
These changes alone allowed the agency to unlock £75,000 in immediate savings and deliver 2–3 visible improvements in the next quarter — meeting donor expectations and building citizen trust.
5. From Sprint to Action (4 Pillars Applied)

Based on the Sprint clarity, Reinvantage proposed a modest, targeted package of support:

  • Readiness → Facilitated inter-ministerial workshops to embed the “one digital service” definition.
  • Foresight → Analysed citizen feedback trends to shape the quick-win roadmap.
  • Growth → Supported the reallocation of funds to joint projects, reducing overlap.
  • Positioning → Crafted a communication plan highlighting early digital wins to donors and citizens.
6. The Results
  • 2 pilot services integrated into the central portal (ID renewal + healthcare booking).
  • Budget savings of £75,000 from eliminating overlapping projects.
  • Citizen satisfaction up modestly → call centre complaints on digital services dropped by 12%.
  • Donor confidence improved → short-term impact report received positive feedback.
The client thought it needed more funding and bigger projects.
The Sprint revealed it first needed clarity and alignment.

By applying the four pillars to a targeted scope, Reinvantage helped deliver visible results within a single quarter — proving progress to citizens and donors and laying the groundwork for deeper transformation.