Blog by attendees, Maria Fornella-Oehninger, SI Representative to the UN in New York and Tania Gómez Herazo, SI AI Advocacy Advisor.
Artificial intelligence holds immense promises for bridging development, filling financing gaps, fostering equity, and driving sustainability across the globe. From extending credit in India to climate risk modeling in Africa, AI tools are already making a tangible difference. However, realising its full potential demands a human-centered approach that prioritises inclusion, gender equality and addresses inherent challenges.
Event Background
This event was organised by the NGO Committee on Financing for Development on the margins of the Fourth Prep Conference on Financing for Development on May 1st, 2025, at the United Nations Headquarters in New York. It was co-sponsored by several members of the Committee, including Soroptimist International.
The main objective of the event was to generate an in-depth discussion of how AI can transform development in the developing world, in an era of immense financial budget constraints given the decrease in Official Development Aid (ODA) and high burdens of sovereign debt in the developing countries. Even as AI has great potential to improve efficiency and resource allocation in the delivery of public goods, the cost of establishing a robust infrastructure and the energy consumption it demands, are serious concerns for financing for development calculations.
In this context, the question is whether these significant investments are necessary to safeguard the most essential elements of development such as social protection, health and education, financial inclusion, and climate resilience.
Diverse Panel Perspectives
The panel was quite diverse, drawing from UN and other intergovernmental agencies, trade unions, NGOs, philanthropy and the private sector, which made for a very rich discussion.
UN Agency Perspectives: Cautious Optimism
In general, it was clear that the representatives of UN agencies were hopeful yet cautious about the great potential of AI in transforming societies, insisting on a “desirable balance of different actors, basic research and indigenous versus foreign innovation” (Hoi Wai Cheng, UNFSO). He cited the Draft Financing for Development outcome document Outcome | FFD4 (art.54 d) which states that members will convene dialogues on the links and impacts of AI and Fintech, and explore development of a set of principles for safe, equitable and inclusive development and the use of AI in Fintech.
ILO Success Stories: The Moldova Example
Dr Carlos Crespo-Carrion, ILO representative, was very positive about AI and emphasised the need to work on transition frameworks for Digital Transformation of Social Protection Systems. He cited the example of Moldova, where with the support of the International Labour Organisation (ILO), a project was initiated in 2016 to utilise Artificial Intelligence for the formalisation of informal economy jobs. Women have predominantly benefited from this initiative.
Trade Union Concerns: Ethical and Inclusive Transition
The main concern expressed by ITUC liaison to the UN, Riefqah Jappie was how to bridge the gap in Financing for Development with a transition to AI that is ethical and inclusive, that ensures access, skills and institutional frameworks, and a more transparent, efficient and just resource allocation.
Local Responsiveness: The Lacuna Fund Model
Laksmee Sharma of Carnegie Endowment highlighted the importance of AI being locally responsive by considering its development, ownership, design, and deployment. Despite substantial funding, AI ecosystems should align with national, regional, and local priorities. The Lacuna Fund demonstrates this approach by providing resources for data scientists, researchers, and social entrepreneurs in low- and middle-income areas to create locally managed labeled datasets that address community-specific issues using trusted and original data.
Key Conclusions and Recommendations
Inclusive Governance Framework
Governance of AI must be inclusive, mandating community and gender-balanced representation in decision-making processes. Promoting sustainable AI solutions is crucial for resource-constrained environments, ensuring that innovation is both accessible and sustainable.
Investment in Digital Infrastructure and Literacy
Key to this is planning for dedicated investment in digital infrastructure – the very foundation upon which equitable access rests. Simultaneously, we must champion digital and AI literacy programs, specifically targeting all women and girls, and marginalised communities, empowering them to navigate and shape this technological transformation that is happening at a fast pace.
The Role of Civil Society
Civil society organisations play a vital role in advocating responsible AI, ensuring accountability and amplifying the voices of those most vulnerable. By actively engaging in multistakeholder fora, we can ensure that digital infrastructure investment and skills capacity building remain top priorities on the global agenda.
Moving Forward: A Collaborative Approach
Let us work collaboratively, fostering partnerships between governments, international organisations, the private sector, and civil society, to harness the transformative power of AI for a more equitable and sustainable future for all.
