The four industries Bangladesh can transform with AI

Bangladesh can benefit from AI-driven initiatives in agriculture, like the start-up iPage which invented an AI-based machine for instant soil testing. Photo: Courtesy

AI is everywhere. From reshaping industries to transforming economies, its impact is undeniable. Yet, amidst the global buzz around its potential, one crucial question emerges: how can Bangladesh harness AI for its own growth?

Neighbouring countries like India and Vietnam are already leveraging AI to drive change. As they integrate this technology into critical sectors, Bangladesh stands at a pivotal moment to follow suit.

With opportunities in agriculture, healthcare, manufacturing, and finance, Bangladesh has a unique chance to leap forward. By embracing AI strategically, the nation can position itself as a competitive force in the global digital economy.

Agriculture 

Agriculture remains the backbone of Bangladesh's economy, contributing 13.47% to the GDP and employing around 40% of the workforce. Yet, the sector is vulnerable to climate change, inefficient farming practices, and limited access to advanced technology. 

AI can revolutionise agriculture by introducing data-driven farming practices that improve yields, reduce costs, and mitigate risks associated with climate variability. 

For example, in India, AI-based platforms like Microsoft FarmBeats and Agriculture Digitalisation are already empowering farmers by providing real-time insights on soil health, weather patterns, and crop management using satellite data and IoT sensors. These technologies allow farmers to make informed decisions on when to plant, irrigate, or harvest their crops. 

Bangladesh could benefit from similar AI-driven initiatives. Local startups such as iFarmer are already making waves by connecting farmers with investors and using data to improve crop planning and management. 

With government support, AI-based predictive analytics tools could be developed to forecast weather conditions, crop diseases, and pest infestations, allowing farmers to respond early and avoid losses. AI-powered drones can also be used for precision agriculture, helping monitor fields and apply fertilisers or pesticides more efficiently. 

According to a report by the International Food Policy Research Institute (IFPRI), the adoption of AI and digital technologies in Bangladesh's agriculture sector could increase crop yields by up to 15% and reduce input costs by 10%, offering a huge potential for economic gains. 

Healthcare 

Bangladesh faces significant challenges in healthcare, including a shortage of healthcare professionals, overburdened public hospitals, and limited access to quality healthcare in rural areas. 

With a population of over 17 crore, the doctor-to-patient ratio stands at just 0.6 per 1,000 people, well below the World Health Organization's recommended minimum of 1. AI can help alleviate these challenges by providing scalable, cost-effective solutions to improve healthcare delivery. 

In countries like Kenya and India, AI is already making healthcare more accessible and efficient. In Kenya, AI-driven mobile health applications like mTIBA are allowing people to access healthcare services remotely, particularly in underserved rural areas. 

Similarly, AI-powered diagnostics are helping doctors in India detect diseases like tuberculosis, diabetes, and cervical cancer more accurately and faster. 

In Bangladesh, AI can be integrated into telemedicine platforms like Doctorola and Praava Health, where chatbots powered by AI can provide preliminary diagnoses and health advice. AI can also be used to streamline hospital operations, reducing patient wait times and improving the efficiency of care. 

For instance, Apollo Hospital in India uses AI to optimise scheduling and management of medical staff, resulting in a more efficient use of hospital resources. 

Moreover, AI can assist in addressing public health challenges. For example, AI tools can help analyse large amounts of health data to predict disease outbreaks and monitor public health trends, which is particularly relevant in countries like Bangladesh, where seasonal outbreaks of diseases like dengue and malaria pose a significant threat. 

Research from Deloitte indicates that AI-driven health solutions could improve healthcare outcomes by 30% while reducing costs by 20%. 

Manufacturing and automation 

The manufacturing sector, particularly the garment industry, plays a vital role in Bangladesh's economy, contributing 84% of the country's export earnings. However, this sector remains heavily labour-intensive and slow to adopt automation. This lag poses significant risks as global competitors increasingly embrace AI and robotics to boost productivity.

AI-driven automation presents a transformative opportunity for Bangladesh. By improving efficiency, reducing costs, and enhancing product quality, AI can help factories remain competitive. Vietnam offers a compelling example, where government support for AI and automation in textiles has led to increased productivity and strengthened global competitiveness.

Similarly, China's Made in China 2025 initiative is transitioning manufacturers to smart factories powered by AI, IoT, and robotics, streamlining operations and raising output.

For Bangladesh, adopting AI in manufacturing could be a game-changer. AI-powered robots could handle repetitive tasks like sewing or cutting fabrics, freeing workers to focus on complex, value-added activities. AI can also optimise supply chains, enabling companies to predict demand more accurately, minimise waste, and meet delivery timelines more efficiently. According to the Boston Consulting Group, AI-driven automation could increase manufacturing productivity by up to 40%, significantly reducing costs and boosting global competitiveness.

Local AI adoption in manufacturing is still in its early stages. Initiatives such as Brac University's research on AI in textiles and the Grameenphone Accelerator's promotion of AI-driven innovation are paving the way. With strong government support and investments in AI technologies, Bangladesh's manufacturing industry has the potential to scale new heights, create jobs, and enhance its position in the global market.

Finance and finTech

Bangladesh's financial sector, particularly its burgeoning fintech industry, is experiencing rapid growth, with companies like bKash leading the way in digital payments. AI has the potential to further revolutionise this sector by enhancing risk management, fraud detection, and customer service.

AI-powered algorithms can detect unusual patterns in financial transactions, enabling banks and fintech companies to identify fraud in real time. Kenya's mobile payment platform M-Pesa demonstrates the effectiveness of AI in preventing fraud and managing transactions efficiently. 

In India, fintech firms like Lendingkart use AI-driven credit scoring models to offer loans to underserved populations by analysing alternative data sources, such as mobile phone usage and social media activity, to assess creditworthiness.

In Bangladesh, firms like bKash could harness AI to deliver more personalised financial products, such as microloans, by analysing customer behaviour and transaction history. AI-driven chatbots can also provide 24/7 customer support, reducing reliance on human agents and improving operational efficiency. 

A study by Accenture predicts that AI could boost banking profitability by 34% in the coming years, highlighting immense untapped potential for financial institutions in Bangladesh.

As Bangladesh looks to embrace AI, the path forward is clear: it's about tapping into these transformative technologies to unlock growth and innovation. 

With the right investments in infrastructure, skills, and support, the country can revolutionise its agriculture, healthcare, manufacturing, and fintech sectors. By setting the stage for AI adoption today, Bangladesh can ensure it doesn't just keep up with global trends—but leads them.

Shivam Goyal is a Partner at Endeavor Capital Management, where he specializes in early-stage investments across AI, Fintech, and SaaS sectors. A 3x startup founder, his work has earned him recognition as a Forbes Under 30 Scholar and a Global Shaper by the World Economic Forum.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.