How will AI affect the economy?

Artificial Intelligence (AI) is rapidly transforming the global economy, and Bangladesh is no exception. From agriculture to finance, AI is creating new opportunities to increase productivity, create jobs, and boost economic growth.
Agriculture is a critical sector in Bangladesh, essential to the country's economy and employment. AI tools can help farmers predict weather patterns, detect crop diseases early, and optimise irrigation. By using AI, farmers will be able to anticipate weather in advance, which will reduce economic losses. Every year, crop diseases cause significant economic damage, negatively impacting a large part of the economy. Early warnings through AI will directly benefit rural communities.
In the garment industry, Bangladesh is the world's second largest exporter of ready-made garments. If AI can improve efficiency through automated quality control, supply chain optimisation, and predictive demand analysis, it will not only reduce costs but also help meet the rapidly changing demands of the global market, resulting in higher profits.
Financial services are also benefiting from AI-powered systems that enable mobile banking, fraud detection, product personalisation, risk management, and automation, thereby reducing costs.
However, challenges remain. AI adoption requires skilled workers, strong infrastructure, and investment in research and innovation. Without proper training, automation may displace some jobs, especially in labour-intensive sectors. A balanced approach is essential-one that focuses on upskilling the workforce, improving internet access, and supporting local AI startups.
If strategically applied, AI has the potential to become a key driver of Bangladesh's economic transformation. The economy of the future can rely not only on low-cost labour but also on the smart integration of technology across all sectors. AI can increase exports, improve service quality, and create high-value employment opportunities, playing a significant role in reducing unemployment in our country. Proper use of AI in agriculture can further develop our economic sector and contribute to sustained growth.

Farjana Nilufar Mim
Undergraduate Student
North south University
farjana.mim@northsouth.edu