• •Deena Mousa reports that AI could entrench economic stagnation in developing nations by automating low-wage tasks that previously fueled growth.
• •The analysis identifies the 're-shoring' of manufacturing and services to developed economies as a primary threat to emerging market development models.
• •It remains unclear whether AI-driven productivity gains can be exported to support domestic industries in the Global South or if infrastructure gaps will prevent this.

AI deployment potentially threatens the traditional 'export-led growth' model used by developing nations to transition from agriculture to manufacturing. Unlike previous technological shifts that offshored labor to lower-cost countries, automation now allows firms to keep operations within advanced economies. However, the exact impact remains theoretical, as high implementation costs and infrastructure barriers currently limit widespread AI adoption in the Global South. Understanding whether these nations can pivot to service-based AI economies will determine if they experience a new era of growth or deepening poverty.