Members and partners of the Small Business Association of Barbados recently engaged FLOW Business representatives in a webinar exploring the disruptive nature of Artificial Intelligence (AI) on today’s business.
Generative AI (GenAI) refers to advanced systems trained on large datasets to create, analyse, and optimise vast amounts of data. It can generate images, text, audio, and code, continuously learning and adapting as new data is introduced.
Global Generative AI
Some 33% of global companies have adopted GenAI, with North America leading with a 40% adoption rate. McKinsey’s 2024 survey showed 65% of organisations use GenAI regularly, a 49% increase from 2023. On average, companies see a 3.7x return on investment (ROI) for every $1 invested in GenAI.
Google AI projects that by 2030, the global GenAI market will grow to USD$356.05 billion, from USD$25.86 billion in 2024.
Statistics for the Region
Information presented by Statista showed projected revenue growth from AI in the Caribbean and Latin America (LAC) of USD$92M in 2025 to USD$520M by 2030. A PricewaterhouseCoopers survey indicated that 45% of Caribbean businesses viewed AI as critical to their overall business strategy.
Within the tourism sector, 33% of businesses have adopted AI, with 30% still considering it. In agriculture, AI tools offered tailored, instant, advice to farmers, accessible via WhatsApp.
A world Bank study proffers that GenAI is expected to affect 26 - 38% of jobs in LAC, offering significant potential to enhance productivity in certain roles, particularly in the urban, educated, and formal sectors, as well as among higher-income earners. This could result in productivity improvements for 8 - 14% of jobs, but 2 - 5% of jobs may face full automation. However, digital infrastructure gaps and unequal access to technology could prevent up to 17 million jobs from benefiting fully from GenAI.
The study highlights the importance of bridging the digital divide, as many workers who could benefit from increased productivity are often employed in low-tech, informal roles. Workers in poorer countries are at risk of being ‘left behind’, as they lack the digital tools necessary to take advantage of GenAI. For example, in Brazil, a large portion of workers living in poverty, that is 8.5% might not fully benefit from GenAI due to 40% of them having limited access to digital technologies at work.
To address these challenges, the World Bank emphasises the need for governments to adopt proactive policies to ensure access to GenAI benefits. They include:
- Lifelong learning.
- Strengthening foundational skills
- Improving social protection
- Boosting digital
- Supporting workers in the informal sector.
By implementing these strategies, governments can not only minimise the risks associated with GenAI’s impact, but they can also maximise AI’s potential for promoting inclusive growth, reducing inequality, and fostering long-term, sustainable development across the region.
Businesssuite online suggets that AI adoption is frequently used in the financial sector, with banks and fintech companies implementing AI tools for fraud detection, risk assessment, and customer service. For example, in Trinidad and Tobago, Republic Bank introduced AI to improve fraud detection and safeguard transactions. Similarly, in retail and tourism, AI solutions like chatbots and recommended engines are redesigning customer interactions and marketing strategies.
AI is also being utilised to address environmental issues, with companies and governments exploring its potential to monitor weather patterns, manage natural resources, and support disaster resilience efforts. These initiatives offer opportunities for sustainable development and could attract global investors interested in supporting environmental solutions.
An Incus Services article opined that several Caribbean countries are leading AI adoption, including Jamaica, which was the first to establish a national AI policy, and Barbados, which is developing its own AI strategy. Trinidad and Tobago is exploring AI applications in the public sector, while Guyana has launched an AI lab with IBM’s support. These initiatives reflect the region's openness to AI and the Fourth Industrial Revolution.
AI’s growing presence in the Caribbean offers significant potential for economic growth, as it can enhance efficiency and productivity across industries, leading to more jobs and higher wages. It can also help address challenges such as crime, climate change, and healthcare. The rise of AI has already transformed sectors like banking, insurance, healthcare, education, and the creative industries, with tools such as predictive analytics, and content generators becoming widely used.
Small Business Solutions
The webinar identified four steps small businesses can consider for AI-Driven Growth:
1: Create an AI Integration Roadmap:
Develop a strategy for incorporating AI into the business processes.
2: Evaluate Data Infrastructure:
Ensure the business has the right infrastructure and data sources for the AI integration.
3: Staff & Training:
Hire or train staff with the necessary skills and also encourage involvement in AI initiatives.
4: Maximising ROI with AI Solutions
Align AI investments with business goals to maximise returns.
AI adoption in the Caribbean still has its limitations such as the lack of accurate demographic data and the underrepresentation of regional perspectives in AI algorithms.
While AI presents exciting opportunities, it raises concerns around human rights and ethics, such as biases in technologies like facial recognition. Better digital infrastructure, and AI training programmes are needed to ensure that the technology reflects the region’s needs.
The development of the cognitive ability of our people is another area of concern associated with AI. Already students in Barbados and the Caribbean are struggling with numeracy and literacy skills. It would be regressive for a generation to emerge that is incapable of simple arithmetic – one plus one – and is reliant on technology to make these basic calculations.
