While large firms have begun experimenting with AI, the vast majority of small and medium-sized enterprises (SMEs) remain excluded. Artificial Intelligence (AI) is no longer a future prospect; it is a decisive competitive advantage driving efficiency and value creation globally.
However, Bangladesh remains at a nascent stage of adoption, largely due to the absence of a structured policy framework.
The core issue is a lack of institutional direction. Without a national roadmap, businesses lack the clarity to adopt AI responsibly and effectively.
A major barrier lies in the absence of defined guidelines for data usage, privacy, and governance. Businesses are increasingly reliant on data to deploy AI, yet limited clarity on compliance and risk management discourages adoption like particularly among organisations that cannot afford reputational risks.
Furthermore, Bangladesh lacks meaningful incentives for AI integration. Unlike regional competitors that offer tax benefits or innovation grants, our businesses face high entry costs with little support. This leaves the broader economy behind while adoption remains concentrated in a small segment.
The skill gap presents another structural challenge. AI requires both technical expertise and strategic business understanding. Currently, a shortage of industry-ready talent and a misalignment between academia and real-world needs make scaling adoption difficult.
The implications are significant.
Countries like India and Vietnam are aggressively investing in AI infrastructure and regulatory clarity. Bangladesh risks a cycle where delayed adoption leads to reduced competitiveness in international
markets.
To address this, policymakers must act decisively. A national AI strategy is essential to outline data governance, provide business incentives, and prioritise industry-academia collaboration.
Without a clear AI policy Bangladesh risks missing a critical window of opportunity in the global
digital economy.
Mahabubur Rahman
Department of Management
North South University
mahabubur.chowdhury@northsouth.edu
